Chapter VII. Conclusions and Policy recommendations
7.1 Policy Recommendations to the EU
Following the results obtained which have highlighted certain circumstances under which Chinese FDIs have a negative impact on the EU integration process, a series of policy advices to tackle the issues currently witnessed and to prevent a potential escalation of the situation have been formulated and directed to the EU.
1- Although it is already on its way, a centralised EU screening mechanism for foreign investments would be an effective tool to tackle the disruptive potential of FDIs, allowing Brussels to have more control over the incoming capital and avoiding the risk of any member developing high degree of dependence from Chinese foreign investments, or any other external actor for that matters. Nevertheless, the EU must create a mechanism that does not suppress the freedom of manoeuvre of its member states, leaving them a certain degree of freedom.
2- At the same time, the EU has to guarantee that the economies of ‘importer’ and weaker states become less subjected to such risks by paying particular attention to them. The growth that, for example, Chinese capital would have granted, needs to be safeguarded and guaranteed by the EU. Otherwise, the adoption of the screening mechanism, or any similar action, could have the opposed result, further exacerbating differences between member states and heightening the Eurosceptic sentiment in those countries that already struggling.
3- The EU needs to keep developing its relationship with China and it needs to do so in a more comprehensive and structured way. China, as any other actor, presents a source of
potential problems, but also resources and will try to maximize the gains from both the EU and China. Thus, the relationship between the two actors needs to be positive but controlled, which means a general EU strategy vis à vis China needs to be adopted as guide line for the members. China has been active in the EU for years now, but the EU still lacks a central response to it, leaving member states alone in deciding how to deal with such actor. If a EU vision of and strategy towards China is not furnished, it will never be possible for the EU to give a unified response to China and thus, China will never see or treat the EU as one actor.
Bibliography
Abulafia, D. (2013). Il Grande Mare. Mondadori.
Analista africano: “L’influenza cinese nel continente è inarrestabile.” (2015). RaiNews. Retrived May 12, 2018, from http://www.rainews.it/dl/rainews/articoli/Analista-africano- influenza-cinese-in-Africa-e-inarrestabile-37a8765d-c713-4577-815f-
3657b0ad200b.html
Anderson, C., & Reichert, M. (1995). Economic Benefits and Support for Membership in the E.U.: A Cross-National Analysis. Journal of Public Policy, 15(3), 231–249.
Arnett, G., Sedghi, A., Galatsidas, A., & Clarke, S. (2015). Greek Referendum: Full results. The Guardian. Retrieved from https://www.theguardian.com/world/ng-
interactive/2015/jul/05/live-results-greek-referendum
ASEAN. (2018). "ASEAN Economic Community". Retrieved April 20, 2018, from http://asean.org/asean-economic-community/
Asiedu, E. (2006). Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability. Journal of International Economy, 1(64), 89–112.
Balasubramanyam, V. N., Sapsfor, D., & Griffiths, D. (2002). Regional Integration Agreements and Foreign Direct Investment: Theory and Preliminary Evidence. The Manchester School, 70(3), 460–482. Retrieved from
https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-9957.00311
Banca d'Italia. (2017). "Investimenti diretti per paese controparte". Retrieved May 19, 2018, from https://www.bancaditalia.it/statistiche/tematiche/rapporti-estero/investimenti- diretti/index.html
Barber, T. (2018). Fears grow that Italy heading for “Syriza” moment. Financial Times. BBC. (2016). "How is the migrant crisis dividing EU countries?". Retrieved from
http://www.bbc.com/news/world-europe-34278886
China’s Growing Political Influence in Europe, (February). Retrieved from
http://www.gppi.net/fileadmin/user_upload/media/pub/2018/Benner_MERICS_2018_Au thoritarian_Advance.pdf
Bettalli, M., D’Agata, A. L., & Magnetto, A. (2015). Storia Greca (2nd ed.). Carocci. Blyth, M. (2013). Austerity. The history of a dangerous idea. Oxford University Press. Brunsden, J. (2017). EU plan to curb Chinese takeover risks trade war. Financial Times. Cardenal, J. P., & Araujo, H. (2018). China’s Silent Army: The Pioneers, Traders, Fixers and
Workers Who Are Remaking the World in Beijing’s Image. Allen Lane and imprint of Penguin Books.
Cerulus, L., & Hanke, J. (2018). Enter the dragon. Chinese investment in crisi-hit countries gives Beijing influence at the European Union’s top table. Politico. Retrieved from https://www.politico.eu/article/china-and-the-troika-portugal-foreign-investment- screening-takeovers-europe/
Chatham House. (2018). "China’s Belt and Road Initiative". London. Retrieved from https://www.chathamhouse.org/research/topics/china-belt-and-road-initiative- bri?gclid=Cj0KCQjwn-
bWBRDGARIsAPS1svt1ecLsu4NLc9mp90u40dw3xTYi6XhklLrVasVuvzgkY1OxRxO A0nwaAq9OEALw_wcB
China’s Market Status. (2018). Retrieved May 7, 2018, from
https://www.votewatch.eu/en/term8-china-s-market-economy-status-joint-motion-for- resolution-vote-resolution.html
CIA. (2018). The World Fact Book.Retrieved May 17, 2018, from
https://www.cia.gov/library/publications/the-world-factbook/index.html Ciaceri, E. (1932). Storia della Magna Grecia. Napoli: Arte Tipografica. Circumstance. (2018). Retrieved May 3, 2018, from
https://en.oxforddictionaries.com/definition/circumstance
Clegg, J., Forsans, N., & Reilly, K. T. (2003). Increasing the Size of the “Country”: Regional Economic Integration and Foreign Direct Investment in a Globalized World Economy. In The Changing Global Context of International Business. London: Palgrave Macmillan.
Clegg, J., & Voss, H. (2014). Chinese overseas direct investment into the European Union. China and the EU in Context: Insights for Business and Investors, 14–43.
https://doi.org/10.1057/9781137351869
Collier, D. (1993). The Comparative Method. Political Science The State of the Discipline II. https://doi.org/10.2307/2504222
Consilium Europa. (2016). "Declaration by the High Representative on behalf of the EU on Recent Developments in the South China Sea". Retrieved May 10, 2018, from
http://www.consilium.europa.eu/en/press/press-releases/2016/03/11/hr-declaration-on- bealf-of-eu-recent-developments-south-china-sea/
Consilium Europa. (2018). Voting Reasults European Council and Council of the European Union.Retrieved April 21, 2018, from http://www.consilium.europa.eu/en/general- secretariat/corporate-policies/transparency/open-data/voting-results/
Costelloe, K., & Totaro, L. (2017). Italian Economic Growth Revised Down as Demand, Exports Rose. Retrieved May 7, 2018, from
https://www.bloomberg.com/news/articles/2017-12-01/italian-economic-growth-revised- down-as-demand-exports-rose
Dimitriadou, A. (2017). Greece : 2017 Economic Outlook, 1–28. Direct Investment. (2017). Retrieved May 19, 2018, from
https://www.bankofgreece.gr/Pages/en/Statistics/externalsector/direct.aspx?lien_externe_ oui=Continue
Economia, R. (2018). Le stime Ue (riviste in rialzo): Italia in crescita nel 2018 all’1,5%. Corriere Della Sera. Retrieved from
http://www.corriere.it/economia/18_febbraio_07/stime-ue-riviste-rialzo-italia-crescita- 2018-all-15percento-828a47e0-0c16-11e8-ac00-e73bcae47d08.shtml?refresh_ce-cp Economy Watch (2015) "Africa’s Dependence on China is Disconcerting". Retrieved May 12,
2018, from http://www.economywatch.com/features/Africas-Dependence-on-China-is- Disconcerting1026.html
Emmott, R., & Koutantou, A. (2017). Greece blocks EU statement on China human rights at U.N. Reuters. Retrieved from https://www.reuters.com/article/us-eu-un-rights/greece-
blocks-eu-statement-on-china-human-rights-at-u-n-idUSKBN1990FP EPRS. (2018). EU framework for FDI screening. Brussels.
EU Referendum Results. (2016). Retrieved April 20, 2018, from http://www.bbc.com/news/politics/eu_referendum/results
Eurobarometer. (2006). Eurobarometer 66, (October), 1–113. Retrieved May 20, 2018, from http://ec.europa.eu/commfrontoffice/publicopinion/archives/eb/eb66/eb66_en.htm Eurobarometer. (2017). EU views on China. Retrieved May 22, 2018, from
https://data.europa.eu/euodp/data/dataset/S2179_88_1_467_ENG
European Commission. (2017). "Investment in the EU Member States An Analysis of Drivers and Barriers". (Vol. 8014). https://doi.org/10.2765/90037
European Commission. (2018). "Greece." Retrieved April 24, 2018, from
https://europa.eu/european-union/about-eu/countries/member-countries/greece_en European Commission. (2018). "Italy.Retrieved". Retrieved April 24, 2018, from
https://europa.eu/european-union/about-eu/countries/member-countries/italy_en European Commission. (2018). The European Single Market. Retrieved May 7, 2018, from
http://ec.europa.eu/growth/single-market_en
European Commission. (2000). "The Schengen area". Retrieved May 10, 2018, from https://ec.europa.eu/home-affairs/sites/homeaffairs/files/e-
library/docs/schengen_brochure/schengen_brochure_dr3111126_en.pdf European Parliament. (2018). Plenary. Retrieved April 21, 2018, from
http://www.europarl.europa.eu/plenary/en/agendas.html
Eurostat. (2016). Share of Member States in EU GDP. Retrieved May 10, 2018, from http://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20170410-1
Eurostat. (2018). SGross Domestic Product at Market Prices. Retrieved May 21, 2018, from Eurostat. (2016). Share of Member States in EU GDP. Retrieved May 10, 2018, from http://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20170410-1
terrible conditions to extract the rare minerals that power your iPhone. Daily Mail Online. Retrieved from http://www.dailymail.co.uk/news/article-3280872/iPhone- mineral-miners-Africa-use-bare-hands-coltan.html
Ferrari, A. (2008). Africa Gialla. L’invasione economica cinese nel continente africano. UTET.
Fox, J., & Godement, F. (2009). A Power Audit of EU-China Relations. Policy Report (Vol. 2).
Freeman, C. (2015). Greek crisis: “We rely on imports. Soon even the most basic goods won”t be available’. The Telegraph. Retrieved from
https://www.telegraph.co.uk/news/worldnews/europe/greece/11707173/Greek-crisis-We- rely-on-imports.-Soon-even-the-most-basic-goods-wont-be-available.html
Ganan Almond, R. (2016). Interview: The South China Sea Ruling. The Diplomat. Global opposition to U.S. surveillance and drones, but limited harm to American image.
(2014).
Global opposition to U.S. surveillance and drones, but limited harm to American image. Chapter 2: China’s Image. (2014). Retrieved from
http://www.pewglobal.org/2014/07/14/chapter-2-chinas-image/
Godement, F., & Vasselier, A. (2017). CHINA AT A NEW POWER AUDIT OF EU-CHINA RELATIONS.
Haas, E. B. (1958). The Uniting of Europe: Political, Social and Economic Forces, 1950- 1957. Stanford University Press.
Hahnemann, H. (2017). Record Flows and Growing Imabalances. Chinese Investments in Europe in 2016.
Harney, A. (2008). China Price, The: The True Cost of Chinese Competitive Advantage. Penguin Press.
Hewitt, G. (2015). Greek debt crisis: A country on the brink. BBC News. Retrieved from http://www.bbc.com/news/world-europe-33303417
Press.
Huotari, M., Otero-iglesias, M., Seaman, J., & Ekman, A. (2015). Mapping Europe-China Relations A Bottom-Up Approach. A Report by the European Think-Tank Network on China (ETNC), (October).
Il Sole 24 Ore. (2013). "Elezioni". Retrieved from
http://www.ilsole24ore.com/speciali/2013/elezioni/risultati/politiche/static/italia.shtml Il Sole 24 Ore. (2018). Elezioni. Retrieved from
http://www.ilsole24ore.com/speciali/2018/elezioni/risultati/politiche/static/italia.shtml IMF. (2018). "IMF Conditionality". Retrieved April 20, 2018, from
https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/28/IMF-Conditionality Infodata. (2017). Boom di investimenti esteri in Italia. Tutti i numeri. Il Sole 24 Ore.
Retrieved from http://www.infodata.ilsole24ore.com/2017/11/10/boom-investimenti- esteri-italia-tutti-numeri/
Italy Economic Outlook. (2018). Focus Economics. Retrieved May 7, 2018, from https://www.focus-economics.com/countries/italy
Jing, F. (2017). Belt and Road Initiative on agenda for Danis PM’s China visit. China Daily. Laing, A. (2010). Zambian miners shot by Chinese managers. The Telegraph. Retrieved from
https://www.telegraph.co.uk/news/worldnews/africaandindianocean/zambia/8073443/Za mbian-miners-shot-by-Chinese-managers.html
Lijphart, A. (1971). Comparative Politics and Comparative Moethod. The American Political Science Review, 65(3), 682–693.
Livio, T. (2005). Storia di Roma. (R. G, Ed.). Garzanti.
McCurry, J. (2015). Greece crisis: markets begin to tumble as investors flee.
Menjie. (2018). Commentary: Xi demonstrates China’s role as responsible country in New Year address. Xinhuanet.
Merriman, J. (2005). A History of Modern Europe. W.W. Norton.
Meunier, S. (2014). Divide and conquer? China and the cacophony of foreign investment rules in the EU. Journal of European Public Policy, 21(7), 996–1016.
https://doi.org/10.1080/13501763.2014.912145
Ministero dello Sviluppo Economico. (2018). Interscambio commerciale dell’Italia (valori in milioni di euro) 2008. Retrieved from
http://www.sviluppoeconomico.gov.it/index.php/it/commercio-
internazionale/osservatorio-commercio-internazionale/statistiche-import-export
Ministry of Foreign Affairs of the People Republic of China. (2016). Xi Jinping Meets with Prime Minister Alexis Tsipras of Greece. Retrieved from
http://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1378515.shtml Montanelli, I. (1965). Storia d’Italia. Bur.
Nardelli, A. (2015). Greece election result: the key numbers. The Guardian. Retrieved from https://www.theguardian.com/world/2015/sep/20/greece-election-result-the-key-numbers Nathan, A. J. (2015). China’s Challenge. Journal of Democracy, 26(1), 156–170.
Nathan, A. J., & Ross, R. S. (1997). The Great Wall and the Empty Fortress: China’s Search for Security. W.W. Norton. Retrieved from
http://afe.easia.columbia.edu/special/china_1950_forpol_principles.htm New Silk Roads. (2018). Retrieved May 21, 2018, from
http://si.wsj.net/public/resources/images/P1-BR865_CAPEC_16U_20141107194517.jpg Nicoll, W. & S. C. T. (1994). Understanding the new European Community. Harvester
Wheatsheaf.
Noci, G. (2017). Perché la Cina tenta il salto di qualità. Il Sole 24 Ore. Retrived May 14, 2018, from http://www.ilsole24ore.com/art/commenti-e-idee/2017-08-14/perche-cina- tenta-salto-qualita-211640.shtml?uuid=AEXhf7CC
OEC. (2018). Greece.Retrieved May 7, 2018, from http://atlas.media.mit.edu/en/profile/country/gre/ OEC. (2018). Italy. Retrieved May 7, 2018, from
https://atlas.media.mit.edu/en/profile/country/ita/
OECD data (2018). FDI flows. Retrieved May 12, 2018, from https://data.oecd.org/fdi/fdi- flows.htm
Panorama. (2017). Renzi contro la Ue: è scontro. Retrieved May 7, 2018, from https://www.panorama.it/news/politica/renzi-contro-la-ue-e-scontro
Pew Research Center. (2017). In 2017, more than half in all but Greece hold a favorable view of EU. Retrieved May 12, 2018, from http://www.pewglobal.org/2017/06/15/post-brexit- europeans-more-favorable-toward-eu/pg_2017-06-15-eu-brexit-00-03/
Pew Research Center. (2017). Sharp increase in favorability of EU in many countries in last year. Retrieved from http://www.pewglobal.org/2017/06/15/post-brexit-europeans-more- favorable-toward-eu/pg_2017-06-15-eu-brexit-00-00/
Putnam, R. D. (1988). Diplomacy and Domestic Politics: The Logic of Two-Level Games. International Organization, 42(3), 427–460. Retrieved from
www.jstor.org/stable/2706785
Raess, D., Wagner, P., & Ren, W. (2017). Chinese Commercially-Oriented Financial Flows and UN Voting Realignment. University of Reading, University of Bern. Retrieved from http://wp.peio.me/wp-content/uploads/2018/01/PEIO11_paper_62.pdf
Reuters. (2016). "EU’s statement on South China Sea reflects divisions". Retrieved from https://www.reuters.com/article/southchinasea-ruling-eu-idUSL8N1A130Y
Reveron, D., & Gvosdev, N. (2018). National Interests and Grand Strategy. The Oxford Handbook of U.S. National Security: Oxford University Press. Retrieved from
http://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780190680015.001.0001/ox fordhb-9780190680015-e-3.
Rhodium Group. (2018). China Investment Monitor: Chinese Foreign Direct Investments in Real Time. Retrieved March 10, 2018, from https://rhg.com/impact/china-investment- monitor/
Santander Trade Portal. (2017). "Greece: Foreign Investments". Retrieved May 10, 2018, from https://en.portal.santandertrade.com/establish-overseas/greece/foreign-investment Santander Trade Portal. (2017). "Italy: Foreign Investments". Retrieved May 10, 2018, from
https://en.portal.santandertrade.com/establish-overseas/italy/foreign-investment
Seaman, J. Huotari, M. Otero-Iglesias, M. (2017). Chinese Investment in Europe. A Country- Level Approach. European Think-Tank Network on China (ETNC).
Smith, H. (2016). Greece “boxed in” as EU and IMF fight over nation’s debt relief plan. The Guardian.
Suokas, J. (2018). Chinese investors cancel plans for massive deep-water port in Sweden. Gb Times.
Tao, X. (2017). Chinese Foreign Policy with Xi Jinping Characteristics. Retrieved from http://carnegieendowment.org/2017/11/20/chinese-foreign-policy-with-xi-jinping- characteristics-pub-74765
te Velde, D. W., & Bezemer, D. (2004). No Regional Integration and Foreign Direct
Investment in Developing Countries. Regional Integration and Poverty. Retrieved from https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/1934.pdf The Economist. (2016). "How to measure prosperity". Retrieved from
https://www.economist.com/leaders/2016/04/30/how-to-measure-prosperity The Mediterranean. (2018). Retrieved May 10, 2018, from
https://www.google.com/maps/@53.8908186,2.5260073,3z
Tonchev, P., & Davarinou, P. (2017). Chinese Investment in Greece and the Big Picture of Sino-Greek Relations Introduction and Acknowledgements, (December). Retrieved from http://idos.gr/wp-content/uploads/2017/12/Chinese-Investment-in-Greece_4-12-2017.pdf Tseng, H., & Krog, R. (2015). No strings attached : Chinese foreign aid and regime stability
in resource-rich recipient countries. Conference Paper, No Need To Cite, 1–3.
Tsitouras, A. (2016). What can Trigger the Resumption of Economic Growth in a Small Open Economy like Greece: Exports or Inward FDI? International Economic Journal, 30(4), 504–526. https://doi.org/10.1080/10168737.2016.1151068
Ursu, A.-E., & van den Berg, W. (2018). China and the EU in the Horn of Africa : competition and cooperation ? (Vol. 3).
US dollar (USD). (2018). Retrieved from
https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_r ates/html/eurofxref-graph-usd.en.html
Van Der Putten, F.-P., Seaman, J., Huotari, M., Ekman, A., & Otero-Iglesias, M. (2016). Europe and China’s New Silk Roads, (December). Retrieved from
https://www.ifri.org/sites/default/files/atoms/files/etnc_2016- europe_and_chinas_new_silk_roads.pdf
Varoufakis, Y. (2017). Adults in the Room. My Battle with Europe’s Deep Establishment. London: The Bodley Head.
Veremis, T. M., & Koliopulos, I. S. (2014). La Grecia moderna. Una storia che inizia nel 1821. ARGO.
VoteWatch. (2018). Council Votes. Retrieved May 7, 2018, from
https://www.votewatch.eu/en/term8-council-votes-term8-greece.html#/%231/0/2014-07- 01/2018-05-07
VoteWatch. (2018). Search for Voting Results. Retrieved May 7, 2018, from http://www.consilium.europa.eu/en/general-secretariat/corporate-
policies/transparency/open-data/voting-results/
Wallace, T. (2017). Greece on brink of return to sustainable growth, economists believe. The Telegraph.
Webber, D. (2014). How likely is it that the European Union will disintegrate? A critical analysis of competing theoretical perspective. European Journal of International Relations, 20(2), 341–365.
Win-win. (2018). Retrieved April 20, 2018, from
https://dictionary.cambridge.org/dictionary/english/win-win
Wnukowski, D. (2016). Granting Market Economy Status to China: Implications for the EU and Poland. Retrieved from http://www.pism.pl/publications/bulletin/no-52-902 World Bank data. (2018). GDP (current US$). Retrieved May 7, 2018, from
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2016&locations=IT- GR&start=2006
World Bank data. (2018). "Greece GDP". Retrieved May 10, 2018, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=GR World Bank data. (2018). "Italy GDP". Retrieved May 10, 2018, from
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=IT
World Bank data. (2018). "Manufacturing, value added (% of GDP)". Retrieved May 7, 2018, from https://data.worldbank.org/indicator/NV.IND.MANF.ZS?end=2016&locations=IT- GR&start=2006
World Trade Organisation. (2016). An introduction to trade and environment in the WTO. Retrieved from http://www.wto.org/english/tratop_e/envir_e/envt_intro_e.htm