Chinese Foreign Direct Investment in High-Technology Sectors of the European Union

Purpose: The purpose of the article is to determine the current trends of Chinese foreign direct investment in high-tech sectors of the EU countries. Design/Methodology/Approach: The authors used the scientific works of Russian and foreign scholars specializing in Chinese investment. In carrying out the study, systematic and historical approaches were used to study the trends of Chinese FDI in the EU. Furthermore, statistical, logical and visualization methods were also incorporated. Findings: It is shown that if initially Chinese investors invested in almost all the industries and sectors in which they were interested in, ranging from the extractive industry to the entertainment industry (e.g. purchase of sports clubs), nowadays Chinese investment policy has become more specialized only in some sectors. Today, China is primarily interested in high-tech industries. As a result, the main goal of Chinese investors is to acquire leading European and American companies engaged in these industries. Chinese investors are supported by the government and the “Made in China 2025” strategy is being fully implemented. One of the key objectives of this strategy is China’s global dominance in technology. Over the last four years Chinese investors made around 30 transactions in high-tech sector in the EU countries. As a result, China has been given access to critical technology that can lead to increase China’s role in global technology market. Originality/Value: The authors describe the current trends of the Chinese investment policy in the technology, analyze the largest Chinese mergers and acquisitions in this sector and draw conclusions about those high-tech sectors in which China is most interested today. On the one hand, Foreign direct investment in the high-tech sector contributes to the development of technology in China, and on the other hand, leads to the loss of the position of European companies in the global technology market.