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Competence Centre on Foresight

We foster a strategic, future-oriented and anticipatory culture in the EU policymaking process.

  • Page | Last updated: 13 Feb 2020

Foreign Direct Investment

  • Global FDI flows decreased by 20% in the first half of 2019 to USD 572 billion. FDI inflows to non-OECD G20 economiesincreased by 21% and FDI outflows remained stable.
  • China's Belt and Road Initiative (BRI) is a geopolitical development strategy to build connectivity and co-operation across six main economic corridors from China to Mongloia and Russia; to Eurasian countries; to Central and West Asia; to Pakistan and other countries of the Indian sub-continent; to Indochina. BRI investments projects are estimate over USD 1 trillion outward funding for foreign infrastructure from 2017 to 2027.
  • The China International Development Cooperation Agency (CIDCA) established in 2018 to oversee China's increasing foreign aid and investment activities launched the China-Africa Cooperation Action Plan (2019-2021) that includes multi-billion dollars projects covering all spheres -- from agriculture and food safety to IT, infrastructure and social development cooperation.
  • China became the single largest contributor of foreign direct investment in Africa in 2014-2018, having invested USD$72.2 billion (more than double of FDIs from France or USA), thus creating 137 throusand jobs.
  • The China Development Bank and Eximbank have provided some $150 billion in finance to Latin America and the Caribbean since 2005 (when Chinese banks began lending to the region) and the Chinese state-to-state finance surpasses that from the World Bank, Inter-American Development Bank (IDB), and Andean Development Bank (CAF).
  • Chinese FDI and aid are not governed by the the Paris principles; they don't require improved governance, nor respect of human rights, nor combating corruption. There seems to be not even a clear distinction between grants, loans and aid.
  • Over the past decade, Europe’s annual foreign investment flows with China have been about double of those of the USA, although starting at about the same level. 
  • Several EU countries express concerns about China’s acquisitions of hi-tech European companies, mostly of dual-use technologies.
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