Download Economy and Demographic

CHINA AND THE EU
BILATERAL TRADE AND
INVESTMENTS
GOVERNANCE INSTITUTE
2017
Contents
Introduction ............................................................................................................................................. 4
EU & China: Bilateral Trade...................................................................................................................... 6
Austria ................................................................................................................................................. 6
Belgium ............................................................................................................................................. 10
Bulgaria ............................................................................................................................................. 14
Croatia ............................................................................................................................................... 18
Cyprus ............................................................................................................................................... 23
The Czech Republic ............................................................................................................................ 27
Denmark ............................................................................................................................................ 31
Estonia............................................................................................................................................... 35
Finland............................................................................................................................................... 39
France ............................................................................................................................................... 43
Germany............................................................................................................................................ 47
Greece ............................................................................................................................................... 51
Hungary ............................................................................................................................................. 55
Ireland ............................................................................................................................................... 59
Italy ................................................................................................................................................... 63
Latvia ................................................................................................................................................. 67
Lithuania ........................................................................................................................................... 71
Luxembourg ...................................................................................................................................... 75
Malta ................................................................................................................................................. 78
Netherlands ...................................................................................................................................... 83
Poland ............................................................................................................................................... 87
Portugal ............................................................................................................................................. 91
Romania ............................................................................................................................................ 95
Slovakia ............................................................................................................................................. 99
Slovenia ........................................................................................................................................... 103
Spain ................................................................................................................................................ 107
Sweden............................................................................................................................................ 111
2
United Kingdom .............................................................................................................................. 115
Chinese companies in Europe .............................................................................................................. 122
Geographical distribution ................................................................................................................ 122
Chinese investments in CEE ................................................................................................................. 126
Data .................................................................................................................................................. 126
Individual Countries ............................................................................................................................. 128
Chinese FDI .......................................................................................................................................... 137
Hungary, Poland, Czech Republic, Romania, Bulgaria, Slovakia .................................................. 137
Hungary............................................................................................................................................ 137
Poland .............................................................................................................................................. 137
Czech Republic ................................................................................................................................. 138
Bulgaria ............................................................................................................................................ 138
Romania ........................................................................................................................................... 138
Slovakia ............................................................................................................................................ 139
Chinese investments in CEE ................................................................................................................. 140
Conclusion........................................................................................................................................ 140
References ........................................................................................................................................... 141
The Sources of the Statistical Data .............................................................................................. 141
The Sources of Demographic and Economic Data ....................................................................... 141
Sources for the part Chinese Investments in the EU ................................................................... 141
3
Introduction
China is the EU's biggest source of imports and has also become one of the EU's fastest growing export
markets with the EU now China’s biggest source of imports. China and Europe now trade well over €1
billion a day. EU imports from China are dominated by industrial and consumer goods with bilateral
trade in services amounting to just one tenth of total trade in goods. Of the EU's exports to China, only
20% are of services.
The study will focus on each country separately. The purpose of this study is to provide an overview of
mutual business cooperation between European Union and China including the investment policy. EU
trade with China is a project which includes 28 countries of European Union, which are: Austria,
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Sweden, and United Kingdom. Each member of EU will be given a
brief one-page summary regarding their business cooperation with China.
All the countries will be briefly summarized with regard to several demographic and economic
indicators such as: population, capital city, currency, unemployment, GDP per capita (PPP)1, exports,
natural resources, agricultural products and industries of each country. Then the two main questions
will be examined:
1) What is the state of import on cooperation with China and on China CEE initiative in their
country?
2) What is the real situation of Chinese export in each country?
3) What is the situation of Chinese FDI in the CEE countries?
The last part of the study will be a conclusion with basic recommendations for import and export in
each country with China, and conclusion and recommendations for further steps towards the Chinese
FDI in CEE countries, and Czech Republic more specifically.
Methods and definitions
Data on trade in goods presented in this News Release are based on data available on 20 December
2016 in Eurostat. These are provisional figures based on information provided by Member States. They
are subject to frequent revision for up to two years after the year in question. Furthermore, national
concepts may differ from the harmonized methodology used by Eurostat, leading to differences
between figures in this release and those published nationally. Products are classified according to the
Standard international trade classification (SITC).
For the part on Chinese FDI in the Central and Eastern Europe, the data from the Ministry of Commerce
of the People's Republic of China (MOFCOM), and the Statistical bulletin of China's outward foreign
direct investments 2014 were used. It is the only known source that completely compile the data for
1
GDP - per capita (PPP) compares GDP on a purchasing power parity basis divided by population
4
the Chinese FDI in CEE, and is used in reports worldwide. However, MOFCOM data are underreported,
as they do not include investments, that were too small to need approval or authorization by MOFCOM.
The data from Eurostat were incomplete for the period monitored in this report, and were not used.
Another European source of the data of FDI are National Banks of the respective countries. Their
reports often differed a lot from the data of MOFCOM, mostly by showing visible fluctuations between
positive as well as negative directions. The main reasons for this are due to the complexities of tracking,
and distinct factors used in the tracking.
5
EU & China: Bilateral Trade
Austria
Economy and Demographics
Austria, with its well-developed market economy, skilled labor force, and high standard of living, is
closely tied to other EU economies, especially Germany's. Its economy features a large service sector,
a relatively sound industrial sector, and a small, but highly developed agricultural sector.
Economic growth has been relatively weak in recent years, approaching 0.9% in 2015. Austria's 5.8%
unemployment rate, while low by European standards, is at its highest rate since the end of World War
II, driven by an increased number of refugees and EU migrants entering the labor market. Without
extensive vocational training programs and generous early retirement, the unemployment rate would
be even higher.
Although Austria's fiscal position compares favorably with other euro-zone countries, it faces several
external risks, such as unexpectedly weak world economic growth threatening the export market,
Austrian banks' continued exposure to Central and Eastern Europe, repercussions from the Hypo Alpe
Adria bank collapse, political and economic uncertainties caused by the European sovereign debt crisis,
the current refugee crisis, and continued unrest in Russia/Ukraine. Early signs point towards a slight
improvement in 2016, driven by low interest rates on government debt. Currently, the budget deficit
stands at 2.7% of GDP and public debt has reached a post-war high of 84.2% of the GDP.
Figure1: Map of Austria in Europe
6
Population
8,711,770 (2016 est.)
Capital city
Vienna
Currency
euro (EUR)
Unemployment
5.7%
GDP – Per Capita
47300 USD
Exports
142.9 USD billion (2015 est.)
Exports - commodities:
machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals,
iron and steel, textiles, foodstuffs
Exports - partners:
Germany 29.4%, US 6.4%, Italy 6.1%, Switzerland 5.7%, France 4.4%, Slovakia 4.2%
Figure 2: Exports partners in Austria
Imports
140 USD billion (2015 est.)
Imports - commodities:
machinery and equipment, motor vehicles, chemicals, metal goods, oil and oil products, natural gas;
foodstuffs
Imports - partners:
Germany 41.5%, Italy 6.3%, Switzerland 6%, Czech Republic 4.2%
7
Figure 3: Imports partners in Austria
Figure 4: Development of Austria exports and imports with China
8
Figure 5: Imports of Austria in products with China
Figure 6: Exports of Austria in products with China
9
Belgium
Economy and Demographics
This modern, open, and private-enterprise-based economy has capitalized on its central geographic
location, highly developed transport network, and diversified industrial and commercial base. Industry
is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural
resources, Belgium imports substantial quantities of raw materials and exports a large volume of
manufactures, making its economy vulnerable to shifts in foreign demand, particularly with Belgium’s
EU trade partners. Roughly three-quarters of Belgium's trade is with other EU countries.
In 2015, Belgian GDP grew by 1.4%, the unemployment rate stabilized at 8.6%, and the budget deficit
was 2.7% of GDP. Prime Minister Charles MICHEL's center-right government has pledged to further
reduce the deficit in response to EU pressure to reduce Belgium's high public debt, which remains
above 100% of GDP, but such efforts could also dampen economic growth. In addition to restrained
public spending, low wage growth and high unemployment promise to curtail a more robust recovery
in private consumption.
The government has pledged to pursue a reform program to improve Belgium’s competitiveness,
including changes to tax policy, labor market rules, and welfare benefits. These changes risk worsening
tensions with trade unions and triggering extended strikes.
Figure 7: Map of Belgium in Europe
Population
11,409,077 (2016 est.)
Capital city
Brussels
Currency
euro (EUR)
10
Unemployment
8.5%
GDP – Per Capita
43,600 USD
Exports
259.9 USD billion (2015 est.)
Exports - commodities:
chemicals, machinery and equipment, finished diamonds, metals and metal products, foodstuffs
Exports - partners:
Germany 16.9%, France 15.5%, Netherlands 11.4%, UK 8.8%, US 6%, Italy 5%
Figure 8: Exports partners in Belgium
Imports
259.6 USD billion (2015 est.)
Imports - commodities:
raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs,
transportation equipment, oil products
Imports - partners:
Netherlands 16.7%, Germany 12.7%, France 9.6%, US 8.7%, UK 5.1%, Ireland 4.7%, China 4.3%
11
Figure 9: Imports partners in Belgium
Figure 10: Development of Belgium exports and imports with China
12
Figure 11: Import of Belgium in products with China
Figure 12: Exports of Belgium in products with China
13
Bulgaria
Economy and Demographics
Bulgaria, a former communist country that entered the EU on 1 January 2007, averaged more than 6%
annual growth from 2004 to 2008, driven by significant amounts of bank lending, consumption, and
foreign direct investment.
Successive governments have demonstrated a commitment to economic reforms and responsible
fiscal planning, but the global downturn sharply reduced domestic demand, exports, capital inflows,
and industrial production. GDP contracted by 5.5% in 2009, and has been slow to recover in the years
since.
Despite a favorable investment regime, including low, flat corporate income taxes, significant
challenges remain. Corruption in public administration, a weak judiciary, and the presence of organized
crime continue to hamper the country's investment climate and economic prospects.
14
Figure 13: Map of Bulgaria in Europe
Population
7,144,653 (2016 est.)
Capital city
Sofia
Currency
lev (BGN)
Unemployment
10.1%
GDP – Per Capita
19,100 USD
Exports
24.62 USD billion (2015 est.)
Exports - commodities:
clothing, footwear, iron and steel, machinery and equipment, fuels
Exports - partners:
Germany 12.5%, Italy 9.2%, Turkey 8.5%, Romania 8.2%, Greece 6.5%, France 4.2%
15
Figure 14: Exports partners in Bulgaria
Imports
26.74 USD billion (2015 est.)
Imports - commodities:
machinery and equipment; metals and ores; chemicals and plastics; fuels, minerals, and raw
materials
Imports - partners:
Germany 12.9%, Russia 12%, Italy 7.6%, Romania 6.8%, Turkey 5.7%, Greece 4.8%, Spain 4.8%
Figure 15: Imports partners in Bulgaria
Figure 16: Development of Bulgaria exports and imports with China
16
Figure 17: Imports of Bulgaria in products with China
Figure 18: Exports of Bulgaria in products with China
17
Croatia
Economy and Demographics
Though still one of the wealthiest of the former Yugoslav republics, Croatia's economy suffered badly
during the 1991-95 war. The country's output during that time collapsed, and Croatia missed the early
waves of investment in Central and Eastern Europe that followed the fall of the Berlin Wall. Between
2000 and 2007, however, Croatia's economic fortunes began to improve with moderate but steady
GDP growth between 4% and 6% led by a rebound in tourism and credit-driven consumer spending.
Inflation over the same period remained tame and the currency, the kuna, stable.
Croatia experienced an abrupt slowdown in the economy in 2008 and has yet to recover; economic
growth was stagnant or negative in each year since 2009. Difficult problems still remain including a
stubbornly high unemployment rate, uneven regional development, and a challenging investment
climate. Croatia continues to face reduced foreign investment.
18
Figure 19: Map of Croatia in Europe
Population
4,313,707 (2016 est.)
Capital city
Zagreb
Currency
kuna (HRK)
Unemployment
17.1%
GDP – Per Capita
21,600 USD
Exports
11.91 USD billion (2015 est.)
Exports - commodities:
transport equipment, machinery, textiles, chemicals, foodstuffs, fuels
Exports - partners:
Italy 13.4%, Slovenia 12.5%, Germany 11.4%, Bosnia and Herzegovina 9.9%, Austria 6.6%, Serbia 4.9%
19
Figure 20: Exports partners in Croatia
Imports
19.28 USD billion (2015 est.)
Imports - commodities:
machinery, transport and electrical equipment; chemicals, fuels and lubricants; foodstuffs
Imports - partners:
Germany 15.5%, Italy 13.1%, Slovenia 10.7%, Austria 9.2%, Hungary 7.8%
Figure 21: Imports partners in Croatia
20
Figure 22: Development of Croatia exports and imports with China
Figure 23: Imports of Croatia in products with China
21
Figure 24: Exports of Croatia in products with China
22
Cyprus
Economy and Demographics
Even though the whole of the island is part of the EU, implementation of the EU "acquis
communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as
the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification
of the island. The market-based economy of the "TRNC" is roughly one-fifth the size of its southern
neighbor and is likewise dominated by the service sector with a large portion of the population
employed by the government. In 2012 - the latest year for which data are available - the services sector,
which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output.
In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively.
Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials,
metal and non-metal products, textiles and clothing. The “TRNC” maintains few economic ties with the
Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily
relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications,
water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are
widely accepted in business transactions.
Figure 25: Map of Cyprus in Europe
Population
1,205,575 (2016 est.)
Capital city
Nicosia
Currency
euro (EUR)
Unemployment
GDP – Per Capita
14.9%
32,800 USD
23
Exports
2.759 USD billion (2015 est.)
Exports - commodities:
citrus, potatoes, pharmaceuticals, cement, clothing
Exports - partners:
Greece 10.9%, Ireland 10.2%, UK 7.2%, Israel 6%
Figure 26: Exports partners in Cyprus
Imports
6.286 USD billion (2015 est.)
Imports - commodities:
consumer goods, petroleum and lubricants, machinery, transport equipment
Imports - partners:
Greece 25.7%, UK 9.1%, Italy 8%, Germany 7.5%, Israel 5.5%, China 4.8%, Netherlands 4.1%
Figure 27: Imports partners in Cyprus
24
Figure 28: Development of Cyprus exports and imports with China
Figure 29: Imports of Cyprus in products with China
25
Figure 30: Exports of Cyprus in products with China
26
The Czech Republic
Economy and Demographics
The Czech Republic is a stable and prosperous market economy that is closely integrated with the EU,
especially since the country's EU accession in 2004. The auto industry is the largest single industry, and,
together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. Czech Republic
produced more than a million cars for the first time in 2010, over 80% of which were exported.
While the conservative, inward-looking Czech financial system has remained relatively healthy, the
small, open, export-driven Czech economy remains sensitive to changes in the economic performance
of its main export markets, especially Germany. When Western Europe and Germany fell into recession
in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production
and exports. As a result, real GDP fell sharply in 2009. The economy slowly recovered in the second
half of 2009 and registered weak growth in the next two years. In 2012 and 2013, however, the
economy fell into a recession again, due both to a slump in external demand in the EU and to the
government’s austerity measures, returning to weak growth in 2014, and stronger growth in 2015.
Figure 31: Map of Czech Republic in Europe
Population
10,644,842 (2016 est.)
Capital city
Prague
Currency
koruna (CZK)
Unemployment
GDP – Per Capita
6.5%
31,600 USD
27
Exports
131 USD billion (2015 est.)
Exports - commodities:
machinery and transport equipment, raw materials, fuel, chemicals
Exports - partners:
Germany 32.4%, Slovakia 9%, Poland 5.8%, UK 5.3%, France 5.1%, Austria 4.1%
Figure 32: Export – partners in Czech Republic
Imports
122.5 USD billion (2015 est.)
Imports - commodities:
machinery and transport equipment, raw materials and fuels, chemicals
Imports - partners:
Germany 30%, Poland 9%, China 8.3%, Slovakia 6.6%, Netherlands 5%, Austria 4.1%
Figure 33: Imports partners in Czech Republic
28
Figure 34: Development of Czech Republic exports and imports with China
Figure 35: Imports of Czech Republic in products with China, 2015
29
Figure 36: Export Czech Republic in products with China, 2015
30
Denmark
Economy and Demographics
This thoroughly modern market economy features a high-tech agricultural sector, advanced industry
with world-leading firms in pharmaceuticals, maritime shipping and renewable energy, and a high
dependence on foreign trade. Denmark is a net exporter of food, oil, and gas and enjoys a comfortable
balance of payments surplus, but depends on imports of raw materials for the manufacturing sector.
Danes enjoy a high standard of living and the Danish economy is characterized by extensive
government welfare measures and an equitable distribution of income. An aging population will be a
major long-term issue.
Denmark is a member of the EU; Danish legislation and regulations conform to EU standards on almost
all issues. Despite previously meeting the criteria to join the European Economic and Monetary Union,
Denmark has negotiated an opt-out with the EU and is not required to adopt the euro. Within the EU,
Denmark is among the strongest supporters of trade liberalization.
Figure 37: Map of Denmark in Europe
Population
5,724,456 (2016 est.)
Capital city
Copenhagen
Currency
Danish krone (DKK)
Unemployment
4.6%
GDP – Per Capita
45,700 USD
31
Exports
95.97 USD billion (2015 est.)
Exports - commodities:
machinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals,
furniture, windmills
Exports - partners:
Germany 17.8%, Sweden 11.6%, US 8.4%, Norway 6.3%, UK 6.3%, Netherlands 4.4%, China 4.2%
Figure 38: Exports partners in Denmark
Imports
85.02 USD billion (2015 est.)
Imports - commodities:
machinery and equipment, raw materials and semi manufactures for industry, chemicals, grain and
foodstuffs, consumer goods
Imports - partners:
Germany 20.4%, Sweden 12.3%, Netherlands 8.1%, China 7.3%, Norway 6.1%, UK 4.4%
Figure 39: Imports partners in Denmark
32
Figure 40: Development of Denmark exports and imports with China
Figure 41: Imports of Denmark in products with China
33
Figure 42: Exports of Denmark in products with China
34
Estonia
Economy and Demographics
Estonia, a member of the EU since 2004 and the euro zone since 2011, has a modern market-based
economy and one of the higher per capita income levels in Central Europe and the Baltic region.
Estonia's successive governments have pursued a free market, pro-business economic agenda, and
sound fiscal policies that have resulted in balanced budgets and low public debt.
The economy benefits from strong electronics and telecommunications sectors and strong trade ties
with Finland, Sweden, and Germany. After two years of robust recovery in 2011 and 2012, the Estonian
economy faltered in 2013 with only 1.6% GDP growth, mainly due to continuing recession in much of
the EU. GDP growth in 2014 was 2.9% but dropped to 1.2% in 2015 due to lower demand in key
Scandinavian export markets. GDP growth is expected to be about 2.2% in 2016.
Estonia is challenged by a shortage of labor, both skilled and unskilled, although the government has
amended its immigration law to allow easier hiring of highly qualified foreign workers.
Figure 43: Map of Estonia in Europe
Population
1,258,545 (July 2016 est.)
Capital city
Tallinn
Currency
euro (EUR)
Unemployment
GDP – Per Capita
6.2%
28,600 USD
35
Exports
12.24 USD billion (2015 est.)
Exports - commodities:
machinery and electrical equipment 34%, food products and beverages 9%, mineral fuels 9%, wood
and wood products 10%, metals 7%, furniture 9%, vehicles and parts 6%, chemicals 5%
Exports - partners:
Sweden 18.8%, Finland 16%, Latvia 10.4%, Russia 6.7%, Lithuania 5.9%, Germany 5.2%, Norway 4.1%
Figure 44: Exports partners in Estonia
Imports
13.19 USD billion (2015 est.)
Imports - commodities:
machinery and electrical equipment 28 %, mineral fuels 11%, food and food products 10%, vehicles
9%, chemical products 8%, metals 8%
Imports - partners:
Finland 14.5%, Germany 11%, Lithuania 9%, Sweden 8.5%, Latvia 8.3%, Poland 7.4%, Russia 6.1%,
Netherlands 5.5%, China 4.8%
Figure 45: Imports partners in Estonia
36
Figure 46: Development of Estonia exports and imports with China
Figure 47: Imports of Estonia in products with China
37
Figure 48: Exports of Estonia in products with China
38
Finland
Economy and Demographics
Finland has a highly industrialized, largely free-market economy with per capita GDP almost as high as
that of Austria, Belgium, the Netherlands, or Sweden. Trade is important, with exports accounting for
over one-third of GDP in recent years.
Finland is historically competitive in manufacturing - principally the wood, metals, engineering,
telecommunications, and electronics industries. Finland excels in export of technology for mobile
phones as well as promotion of startups in the information and communications technology, gaming,
cleantech, and biotechnology sectors. Except for timber and several minerals, Finland depends on
imports of raw materials, energy, and some components for manufactured goods. Because of the cold
climate, agricultural development is limited to maintaining self-sufficiency in basic products. Forestry,
an important export industry, provides a secondary occupation for the rural population. Finland had
been one of the best performing economies within the EU before 2009 and its banks and financial
markets avoided the worst of global financial crisis.
Figure 49: Map of Finland in Europe
Population
5,498,211 (July 2016 est.)
Capital city
Helsinki
Currency
euro (EUR)
Unemployment
GDP – Per Capita
4.6%
45,700 USD
39
Exports
95.97 USD billion (2015 est.)
Exports - commodities:
machinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals,
furniture, windmills
Exports - partners:
Germany 17.8%, Sweden 11.6%, US 8.4%, Norway 6.3%, UK 6.3%, Netherlands 4.4%, China 4.2%
Figure 50: Exports partners in Finland
Imports
85.02 USD billion (2015 est.)
Imports - commodities:
machinery and equipment, raw materials and semi manufactures for industry, chemicals, grain and
foodstuffs, consumer goods
Imports - partners:
Germany 20.4%, Sweden 12.3%, Netherlands 8.1%, China 7.3%, Norway 6.1%, UK 4.4%
Figure 51: Imports partners in Finland
40
Figure 52: Development of Finland exports and imports with China
Figure 53: Imports of Finland in products with China
41
Figure 54: Exports of Finland in products with China
42
France
Economy and Demographics
The French economy is diversified across all sectors. The government has partially or fully privatized
many large companies, including Air France, France Telecom, Renault, and Thales. However, the
government maintains a strong presence in some sectors, particularly power, public transport, and
defense industries. With more than 84 million foreign tourists per year, France is the most visited
country in the world and maintains the third largest income in the world from tourism. France's leaders
remain committed to a capitalism in which they maintain social equity by means of laws, tax policies,
and social spending that mitigate economic inequality.
France's real GDP increased by 1.1% in 2015. The unemployment rate (including overseas territories)
increased from 7.8% in 2008 to 9.9% in the fourth quarter of 2014. Youth unemployment in
metropolitan France decreased from a high of 25.4% in the fourth quarter of 2012 to 24.3% in the
fourth quarter of 2014.
Figure 55: Map of France in Europe
Population
62,814,233 (July 2016 est.)
Capital city
Paris
Currency
euro (EUR)
Unemployment
10.1%
GDP – Per Capita
41,200 USD
43
Exports
510.5 USD billion (2015 est.)
Exports - commodities:
machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron
and steel, beverages
Exports - partners:
Germany 15.9%, Spain 7.3%, US 7.2%, Italy 7.1%, UK 7.1%, Belgium 6.8%
Figure 56: Exports partners in France
Imports
537.5 USD billion (2015 est.)
Imports - commodities:
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals
Imports - partners:
Germany 19.5%, Belgium 10.7%, Italy 7.7%, Netherlands 7.5%, Spain 6.8%, US 5.5%, China 5.4%, UK
4.3%
Figure 57: Imports partners in France
44
Figure 58: Development of France exports and imports with China
Figure 59: Imports of France in products with China
45
Figure 60: Exports of France in products with China
46
Germany
Economy and Demographics
The German economy - the fifth largest economy in the world in (PPP)2 terms and Europe's largest - is
a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a
highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic
challenges to sustained long-term growth. The German economy suffers from low levels of investment,
and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended
to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor
Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut
down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear
power largely with renewable energy, which accounted for 27.8% of gross electricity consumption in
2014, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power
for 23% of its electricity generating capacity and 46% of its base-load electricity production. Domestic
consumption, bolstered by low energy prices and a weak euro, are likely to drive German GDP growth
again in 2016.
Figure 61: Map of Germany in Europe
Population
80,722,792 (July 2016 est.)
Capital city
Berlin
Currency
euro (EUR)
2
GDP - per capita (PPP) compares GDP on a purchasing power parity basis divided by population
47
Unemployment
4.6%
GDP – Per Capita
46,900 USD
Exports
1.309 USD trillion (2015 est.)
Exports - commodities:
motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment,
pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products
Exports - partners:
US 9.6%, France 8.6%, UK 7.5%, Netherlands 6.6%, China 6%, Italy 4.9%, Austria 4.8%, Poland 4.4%,
Switzerland 4.2%
Figure 62: Exports partners in Germany
Imports
1.017 USD trillion (2015 est.)
Imports - commodities:
machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment,
pharmaceuticals, foodstuffs, agricultural products
Imports - partners:
Netherlands 13.7%, France 7.6%, China 7.3%, Belgium 6%, Italy 5.2%, Poland 5%, US 4.7%, Czech
Republic 4.5%, UK 4.2%, Austria 4.2%, Switzerland 4.2%
48
Figure 63: Imports partners in Germany
Figure 64: Development of Germany exports and imports with China
49
Figure 65: Imports of Germany in products with China
Figure 66: Exports of Germany in products with China
50
Greece
Economy and Demographics
Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per
capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP.
Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece
is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.
The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy
went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and
Athens' failure to address a growing budget deficit. By 2013 the economy had contracted 26%,
compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget
deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, with the deficit reaching
15% of GDP. Deteriorating public finances, inaccurate and misreported statistics, and consistent
underperformance on reforms prompted major credit rating agencies to downgrade Greece's
international debt rating in late 2009 and led the country into a financial crisis. Under intense pressure
from the EU and international market participants, the government accepted a bailout program that
called on Athens to cut government spending, decrease tax evasion, overhaul the civil-service, healthcare, and pension systems, and reform the labor and product markets. Austerity measures reduced
the deficit to 3% in 2015.
Figure 67: Map of Greece in Europe
Population
10,773,253 (July 2016 est.)
Capital city
Athens
Currency
euro (EUR)
51
Unemployment
25%
GDP – Per Capita
26,400 USD
Exports
27.5 USD billion (2015 est.)
Exports - commodities:
food and beverages, manufactured goods, petroleum products, chemicals, textiles
Exports - partners:
Italy 11.2%, Germany 7.3%, Turkey 6.6%, Cyprus 5.9%, Bulgaria 5.2%, US 4.8%, UK 4.2%, Egypt 4%
Figure 68: Exports partners in Greece
Imports
46.62 USD billion (2015 est.)
Imports - commodities:
machinery, transport equipment, fuels, chemicals
Imports - partners:
Germany 10.7%, Italy 8.4%, Russia 7.9%, Iraq 7%, China 5.9%, Netherlands 5.5%, France 4.5%
52
Figure 69: Imports partners in Greece
Figure 70: Development of Greece exports and imports with China
Figure 71: Imports of Greece in products with China
53
Figure 72: Exports of Greece in products with China
54
Hungary
Economy and Demographics
Hungary has made the transition from a centrally planned to a market economy, with a per capita
income nearly two-thirds that of the EU-28 average. In late 2008, Hungary's impending inability to
service its short-term debt - brought on by the global financial crisis - led Budapest to obtain an
IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic
downturn, declining exports, and low domestic consumption and investment, dampened by
government austerity measures, resulted in a severe economic contraction in 2009. In 2010, the new
government implemented a number of changes including cutting business and personal income taxes,
but imposed "crisis taxes" on financial institutions, energy and telecom companies, and retailers. The
IMF/EU bailout program lapsed at the end of 2010 and was replaced by Post Program Monitoring and
Article IV Consultations on overall economic and fiscal processes. At the end of 2011 the government
turned to the IMF and the EU to obtain a financial backstop to support its efforts to refinance foreign
currency debt and bond obligations in 2012 and beyond, but Budapest's rejection of EU and IMF
economic policy recommendations led to a breakdown in talks with the lenders in late 2012. Global
demand for high yield has since helped Hungary to obtain funds on international markets.
Figure 73: Map of Hungary in Europe
Population
9,874,784 (July 2016 est.)
Capital city
Budapest
Currency
Hungarian forint (HUF)
55
Unemployment
6.8%
GDP – Per Capita
26,200 USD
Exports
89.44 USD billion (2015 est.)
Exports - commodities:
machinery and equipment 53.5%, other manufactures 31.2%, food products 8.7%, raw materials
3.4%, fuels and electricity 3.9%
Exports - partners:
Germany 28%, Romania 5.4%, Slovakia 5.1%, Austria 5%, Italy 4.8%, France 4.7%, UK 4%, Czech
Republic 4%
Figure 74: Exports partners in Hungary
Imports
84.7 USD billion (2015 est.)
Imports - commodities:
machinery and equipment 45.4%, other manufactures 34.3%, fuels and electricity 12.6%, food
products 5.3%, raw materials 2.5%
Imports - partners:
Germany 25.8%, China 6.7%, Austria 6.6%, Poland 5.5%, Slovakia 5.3%, France 5%, Czech Republic
4.8%, Netherlands 4.6%, Italy 4.5%
56
Figure 75: Imports partners in Hungary
Figure 76: Development of Hungary exports and imports with China
57
Figure 77: Imports of Hungary in products with China
Figure 78: Exports of Hungary in products with China
58
Ireland
Economy and Demographics
Ireland is a small, modern, trade-dependent economy. Ireland was among the initial group of 12 EU
nations that began circulating the euro on 1 January 2002.
GDP growth averaged 6% in 1995-2007, but economic activity dropped sharply during the world
financial crisis and the subsequent collapse of its domestic property market and construction industry.
Faced with sharply reduced revenues and a burgeoning budget deficit from efforts to stabilize its fragile
banking sector, the Irish Government introduced the first in a series of draconian budgets in 2009.
These measures were not sufficient to stabilize Ireland’s public finances. In 2010, the budget deficit
reached 32.4% of GDP - the world's largest deficit, as a percentage of GDP. In late 2010, the former
COWEN government agreed to a $92 billion loan package from the EU and IMF to help Dublin
recapitalize Ireland’s banking sector and avoid defaulting on its sovereign debt. In March 2011, the
KENNY government intensified austerity measures to meet the deficit targets under Ireland's EU-IMF
bailout program.
59
Figure 79: Map of Ireland in Europe
Population
4,952,473 (July 2016 est.)
Capital city
Dublin
Currency
euro (EUR)
Unemployment
9.4%
GDP – Per Capita
55,500 USD
Exports
125.5 USD billion (2015 est.)
Exports - commodities:
machinery and equipment, computers, chemicals, medical devices, pharmaceuticals; foodstuffs,
animal products
Exports - partners:
US 23.7%, UK 13.8%, Belgium 13.2%, Germany 6.6%, Switzerland 5.5%, Netherlands 4.4%, France
4.4%
60
Figure 80: Exports partners in Ireland
Imports
75.73 USD billion (2015 est.)
Imports - commodities:
data processing equipment, other machinery and equipment, chemicals, petroleum and petroleum
products, textiles, clothing
Imports - partners:
UK 32.5%, US 14%, France 10.2%, Germany 9.3%, Netherlands 4.9%, China 4.1%
Figure 81: Imports partners in Ireland
Figure 82: Development of Ireland exports and imports with China
61
Figure 83: Imports of Ireland in products with China
Figure 84: Exports of Ireland in products with China
62
Italy
Economy and Demographics
Italy has a diversified economy, which is divided into a developed industrial north, dominated by
private companies, and a less-developed, highly subsidized, agricultural south, where unemployment
is higher. The Italian economy is driven in large part by the manufacture of high-quality consumer
goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a
sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These
activities are most common within the agriculture, construction, and service sectors. Italy is the thirdlargest economy in the euro zone, but its exceptionally high public debt and structural impediments to
growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily
since 2007, topping 135% of GDP in 2015, but investor concerns about Italy and the broader euro-zone
crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euroera records.
Figure 85: Map of Italy in Europe
Population
62,007,540 (July 2016 est.)
Capital city
Rome
Currency
euro (EUR)
Unemployment
GDP – Per Capita
11.9%
35,700 USD
63
Exports
450.1 USD billion (2015 est.)
Exports - commodities:
engineering products, textiles and clothing, production machinery, motor vehicles, transport
equipment, chemicals; foodstuffs, beverages, and tobacco; minerals, nonferrous metals
Exports - partners:
Germany 12.3%, France 10.3%, US 8.7%, UK 5.4%, Spain 4.8%, Switzerland 4.7%
Figure 86: Exports partners in Italy
Imports
391.2 USD billion (2015 est.)
Imports - commodities:
engineering products, chemicals, transport equipment, energy products, minerals and nonferrous
metals, textiles and clothing; food, beverages, tobacco
Imports - partners:
Germany 15.4%, France 8.7%, China 7.7%, Netherlands 5.6%, Spain 5%, Belgium 4.7%
Figure 87: Imports partners in Italy
64
Figure 88: Development of Italy exports and imports with China
Figure 89: Imports of Italy in products with China
65
Figure 90: exports of Italy in products with China
66
Latvia
Economy and Demographics
Latvia is a small, open economy with exports contributing nearly a third of GDP. Due to its geographical
location, transit services are highly-developed, along with timber and wood-processing, agriculture and
food products, and manufacturing of machinery and electronics industries. Corruption continues to be
an impediment to attracting foreign direct investment and Latvia's low birth rate and decreasing
population are major challenges to its long-term economic vitality.
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a
severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure
amid the softening world economy. Triggered by the collapse of the second largest bank, GDP plunged
18% in 2009. The economy has not returned to pre-crisis levels despite strong growth, especially in the
export sector in 2011-14.
Figure 91: Map of Latvia in Europe
Population
1,965,686 (July 2016 est.)
Capital city
Riga
Currency
euro (EUR)
Unemployment
9.9%
GDP – Per Capita
24,700 USD
Exports
11.4 USD billion (2015 est.)
Exports - commodities:
foodstuffs, wood and wood products, metals, machinery and equipment, textiles
67
Exports - partners:
Lithuania 17.8%, Russia 11.5%, Estonia 11.1%, Germany 6.3%, Poland 5.6%, Sweden 5.2%, UK 5%,
Denmark 4%
Figure 92: Exports partners in Latvia
Imports
13.74 USD billion (2015 est.)
Imports - commodities:
machinery and equipment, consumer goods, chemicals, fuels, vehicles
Imports - partners:
Lithuania 16.9%, Germany 11.2%, Poland 10.5%, Russia 8.1%, Estonia 7.7%, Finland 5.2%,
Netherlands 4%
Figure 93: Imports partners in Latvia
68
Figure 94: Development of Latvia exports and imports with China
Figure 95: Imports of Latvia in products with China
69
Figure 96: Exports of Latvia in products with China
70
Lithuania
Economy and Demographics
Lithuania gained membership in the WTO in May 2001 and joined the EU in May 2004. Lithuania's trade
with the EU and CIS countries accounts for approximately 87.3% of total trade. Foreign investment and
EU funding have aided in the transition from the former planned economy to a market economy. The
three former Soviet Baltic republics were severely hit by the 2008-09 financial crisis, but Lithuania has
rebounded and become one of the fastest growing economies in the EU. Lithuania’s ongoing recovery
hinges on export growth, which is being hampered by economic slowdowns in the EU and Russia.
Lithuania joined the euro zone on 1 January 2015 and is under review for membership in the OECD.
Figure 97: Map of Lithuania in Europe
Population
2,854,235 (July 2016 est.)
Capital city
Vilnius
Currency
euro (EUR)
Unemployment
GDP – Per Capita
9.1%
28,400 USD
71
Exports
24.81 USD billion (2015 est.)
Exports - commodities:
refined fuel, machinery and equipment, chemicals, textiles, foodstuffs, plastics
Exports - partners:
Russia 13.7%, Latvia 9.8%, Poland 9.7%, Germany 7.8%, Estonia 5.3%, Belarus 4.6%, UK 4.5%, US
4.4%, Netherlands 4%
Figure 98: Exports partners in Lithuania
Imports
26.93 USD billion (2015 est.)
Imports - commodities:
oil, natural gas, machinery and equipment, transport equipment, chemicals, textiles and clothing,
metals
Imports - partners:
Russia 16.9%, Germany 11.5%, Poland 10.3%, Latvia 7.6%, Netherlands 5.1%, Italy 4.5%
Figure 99: Imports partners in Lithuania
72
Figure 100: Development of Lithuania exports and imports with China
Figure 101: Imports of Lithuania in products with China
73
Figure 102: Exports of Lithuania in products with China
74
Luxembourg
Economy and Demographics
This small, stable, high-income economy has historically featured solid growth, low inflation, and low
unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified
to include chemicals, machinery and equipment, rubber, automotive components, and other products.
The financial sector, which accounts for about 36% of GDP, is the leading sector in the economy. The
economy depends on foreign and cross-border workers for about 39% of its labor force.
Luxembourg experienced uneven economic growth in the aftermath of the global economic crisis that
began in late 2008. Luxembourg's GDP contracted 3.6% in 2009, rebounded in 2010-12, fell again in
2013-14, but recovered in 2015. Unemployment has remained below the EU average despite having
increased from a historically low rate of 4% in the 2000s to 7.1% in 2014.
The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among
the highest in the world and is the highest in the euro zone. Luxembourg has one of the highest current
account surpluses as a share of GDP in the euro zone, and it maintains a healthy budgetary position
and the lowest public debt level in the region.
Figure 103: Map of Luxembourg
Population
582,291 (July 2016 est.)
Capital city
Luxembourg
Currency
euro (EUR)
Unemployment
GDP – Per Capita
6.9%
99,000 USD
75
Exports
17.81 USD billion (2015 est.)
Exports - commodities:
machinery and equipment, steel products, chemicals, rubber products, glass
Exports - partners:
Germany 22.1%, Belgium 16.7%, France 16.6%, UK 4.7%, Italy 4.6%, Netherlands 4%
Figure 104: exports partners in Luxembourg
Imports
20.22 USD billion (2015 est.)
Imports - commodities:
commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
Imports - partners:
Belgium 27.6%, Germany 22.9%, China 11.7%, France 9.5%, US 8.4%, Netherlands 4.2%, Mexico 4.1%
Figure 105: Imports partners of Luxembourg
76
Figure 106: Development of Luxembourg exports and imports with China
Figure 107: Imports of Luxembourg in products with China
77
Figure 108: Exports of Luxembourg in products with China
Malta
Economy and Demographics
Malta - the smallest economy in the euro zone - produces only about 20% of its food needs, has limited
fresh water supplies, and has few domestic energy sources. Malta's economy is dependent on foreign
78
trade, manufacturing, and tourism. Malta joined the EU in 2004 and adopted the euro on 1 January
2008.
Malta has weathered the euro-zone crisis better than most EU member states due to a low debt-toGDP ratio and financially sound banking sector. It has low unemployment relative to other European
countries, and growth has recovered since the 2009 recession. In 2014 and 2015, Malta led the euro
zone in growth, expanding by nearly 3.5% each year.
Malta’s services sector continued to grow in 2015, with noted increases in the financial services and
online gaming sectors. Malta continues to enhance its regulation of the financial services sector, and
passed additional legislation in 2014 and 2015 to improve anti-money laundering oversight for financial
and gaming activities
Figure 109: Map of Malta in Europe
Population
415,196 (July 2016 est.)
Capital city
Valletta
Currency
euro (EUR)
Unemployment
5.4%
GDP – Per Capita
35,900 USD
Exports
2.956 USD billion (2015 est.)
Exports - commodities:
machinery and mechanical appliances; mineral fuels, oils and petroleum products; pharmaceutical
products; books and newspapers; aircraft/spacecraft and parts; toys, games, and sports equipment
Exports - partners:
Germany 13.3%, France 10.2%, Hong Kong 7.4%, Singapore 7.3%, UK 6.4%, US 5.8%, Italy 5.6%, Japan
4.7%
79
Figure 110: Exports partners in Malta
Imports
4.603 USD billion (2015 est.)
Imports - commodities:
mineral fuels, oils and products; electrical machinery; aircraft/spacecraft and parts thereof;
machinery and mechanical appliances; plastic and other semi-manufactured goods; vehicles and
parts
Imports - partners:
Italy 23%, Netherlands 8.4%, UK 7.5%, Germany 6.8%, Canada 6.1%, China 4.1%, France 4%
Figure 111: Imports partners in Malta
80
Figure 112: Development of Malta exports and imports with China
Figure 113: Imports of Malta in products with China
81
Figure 114: Exports of Malta in products with China
82
Netherlands
Economy and Demographic
The Netherlands, the sixth-largest economy in the European Union, plays an important role as a
European transportation hub, with a persistently high trade surplus, stable industrial relations, and
moderate unemployment. Industry focuses on food processing, chemicals, petroleum refining, and
electrical machinery. A highly mechanized agricultural sector employs only 2% of the labor force but
provides large surpluses for food-processing and underpins the country’s status as the world’s second
largest agricultural exporter.
The Netherlands is part of the euro zone, and as such, its monetary policy is controlled by the European
Central Bank. The Dutch financial sector is highly concentrated, with four commercial banks possessing
over 90% of banking assets. The sector suffered as a result of the global financial crisis and required
billions of dollars of government support, but the European Banking Authority completed stringent
reviews in 2014 and deemed Dutch banks to be well-capitalized.
Figure 115: Map of Netherlands in Europe
Population
17,016,967 (July 2016 est.)
Capital city
Amsterdam
Currency
euro (EUR)
Unemployment
GDP – Per Capita
6.2%
50,800 USD
83
Exports
460.1 USD billion (2016 est.)
Exports - commodities:
machinery and equipment, chemicals, fuels; foodstuffs
Exports - partners:
Germany 24.5%, Belgium 11.1%, UK 9.3%, France 8.4%, Italy 4.2%
Figure 116: Exports partners in Netherlands
Imports
376.3 USD billion
Imports - commodities:
machinery and transport equipment, chemicals, fuels, foodstuffs, clothing
Imports - partners:
Germany 14.7%, China 14.5%, Belgium 8.2%, US 8.1%, UK 5.1%
Figure 117: Imports partners in Netherlands
84
Figure 118: Development of Netherlands exports and imports with China
Figure 119: Imports of Netherlands in products with China
85
Figure 120: Exports of Netherlands in products with China
86
Poland
Economy and Demographic
Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only
EU country to avoid a recession through the 2008-09 economic downturn. Although EU membership
and access to EU structural funds have provided a major boost to the economy since 2004, GDP per
capita remains significantly below the EU average and the unemployment rate is now below the EU
average.
The government of Prime Minister Donald TUSK steered the Polish economy through the economic
downturn by skillfully managing public finances and adopting controversial pension and tax reforms to
further shore up public finances. While the Polish economy has performed well over the past five years,
growth slowed in 2013 and picked back up in 2014-15. Poland’s new center-right Law and Justice
government plans to introduce expansionary economic policies to spur long-term growth, but social
spending programs are expected to lead to increased deficit spending over the medium term.
Figure 121: Map of Poland in Europe
Population
38,523,261 (July 2016 est.)
Capital city
Warsaw
Currency
polish zloty (PLN)
87
Unemployment
9.6%
GDP – Per Capita
27,700 USD
Exports
188.3 USD billion (2016 est.)
Exports - commodities:
machinery and transport equipment, intermediate manufactured goods, miscellaneous
manufactured goods, food and live animals
Exports - partners:
Germany 27.1%, UK 6.8%, Czech Republic 6.6%, France 5.5%, Italy 4.8%, Netherlands 4.4%
Figure 122: Exports partners in Europe
Imports
189.5 USD billion
Imports - commodities:
machinery and transport equipment, intermediate manufactured goods, chemicals, minerals, fuels,
lubricants, and related materials
Imports - partners:
Germany 27.6%, China 7.5%, Russia 7.2%, Netherlands 5.9%, Italy 5.2%, France 4.1%
Figure 123: Imports partners in Poland
88
Figure 124: Development of Poland exports and imports with China
Figure 125: Imports of Poland in products with China
89
Figure 126: Exports of Poland in products with China
90
Portugal
Economy and Demographic
Portugal has become a diversified and increasingly service-based economy since joining the European
Community - the EU's predecessor - in 1986. Over the following two decades, successive governments
privatized many state-controlled firms and liberalized key areas of the economy, including the financial
and telecommunications sectors. The country qualified for the Economic and Monetary Union (EMU)
in 1998 and began circulating the euro on 1 January 2002 along with 11 other EU members. The
economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in
2001-08. The economy contracted 2.5% in 2009, before growing 1.4% in 2010, but GDP fell again from
2011 to 2013, as the government implemented spending cuts and tax increases to comply with
conditions of an EU-IMF financial rescue package, signed in May 2011. Austerity measures also have
contributed to record unemployment and a wave of emigration not seen since the 1960s. Booming
exports will contribute to growth and employment in 2014, but the need to continue to reduce privateand public-sector debt could weigh on consumption and investment.
Figure 127: Map of Portugal In Europe
Population
10,833,816 (July 2016 est.)
Capital city
Lisbon
Currency
euro (EUR)
Unemployment
11.3%
GDP – Per Capita
28,500 USD
91
Exports
52.2 USD billion (2016 est.)
Exports - commodities:
agricultural products, foodstuffs, wine, oil products, chemical products, plastics and rubber, hides,
leather, wood and cork, wood pulp and paper, textile materials, clothing, footwear, machinery and
tools, base metals
Exports - partners:
Spain 25%, France 12.1%, Germany 11.8%, UK 6.7%, US 5.2%, Angola 4.2%, Netherlands 4%
Figure 128: Exports partners in Portugal
Imports
61.7 USD billion (2016 est.)
Imports - commodities:
agricultural products, chemical products, vehicles and other transport material, optical and precision
instruments, computer accessories and parts, semiconductors and related devices, oil products, base
metals, food products, textile materials
Imports - partners:
Spain 32.9%, Germany 12.9%, France 7.4%, Italy 5.4%, Netherlands 5.1%
Figure 129: Imports partners in Portugal
92
Figure 130: Development of Portugal exports and imports with China
Figure 131: Imports of Portugal in products with China
93
Figure 132: Exports of Portugal in products with China
94
Romania
Economy and Demographic
Economy - overview: Romania, which joined the EU on 1 January 2007, began the transition from
communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the
country's needs. Romania's macroeconomic gains have only recently started to spur creation of a
middle class and to address Romania's widespread poverty. Corruption and red tape continue to
permeate the business environment.
Economic growth rebounded in 2013-15, driven by strong industrial exports and excellent agricultural
harvests, and the fiscal deficit was reduced substantially. Industry outperformed other sectors of the
economy in 2015. Exports remained an engine of economic growth, led by trade with the EU, which
accounts for roughly 70% of Romania trade. Domestic demand was a second driver, due to the mid2015 cut, from 24% to 9%, of the VAT levied upon foodstuffs. In 2015, the government of Romania
succeeded in meeting its annual target for the budget deficit, the external deficit remained low, even
if it rose due to increasing imports. For the first time since 1989, inflation turned into deflation, allowing
for a gradual loosening of monetary policy throughout the period.
Figure 133: Map of Romania in Europe
Population
21,599,736 (July 2016 est.)
Capital city
Bucharest
Currency
Romanian Leu (RON)
Unemployment
6.7%
GDP – Per Capita
22,300 USD
95
Exports
56.03 USD billion (2016 est.)
Exports - commodities:
machinery and equipment, other manufactured goods, agricultural products and foodstuffs, metals
and metal products, chemicals, minerals and fuels, raw materials
Exports - partners:
Germany 19.8%, Italy 12.5%, France 6.8%, Hungary 5.4%, UK 4.4%
Figure 134: Exports partners in Romania
Imports
66.45 USD billion (2016 est.)
Imports - commodities:
machinery and equipment, other manufactured goods, chemicals, agricultural products and
foodstuffs, fuels and minerals, metals and metal products, raw materials
Imports - partners:
Germany 19.8%, Italy 10.9%, Hungary 8%, France 5.6%, Poland 4.9%, China 4.6%, Netherlands 4%
Figure 135: Imports partners in Romania
96
Figure 136: Development of Romania exports and imports with China
Figure 137: Imports of Romania in products with China
97
Figure 138: Exports of Romania in products with China
98
Slovakia
Economy and Demographic
Economy - overview: Slovakia has made significant economic reforms since its separation from the
Czech Republic in 1993. With a population of 5.4 million, the Slovak Republic has a small, open
economy, with exports, at about 93% of GDP, serving as the main driver of GDP growth. Slovakia joined
the EU in 2004 and the euro zone in 2009. The country’s banking sector is sound.
Slovakia has led the region garnering FDI, because of its relatively low-cost, highly-skilled labor force,
reasonable tax rates, and favorable geographic location in the heart of Central Europe. However,
recent increases in corporate taxes, as well as changes to the Labor Code, slow dispute resolution, and
ongoing corruption potentially threaten the attractiveness of the Slovak market. Moreover, the energy
sector is characterized by high costs, unpredictable regulatory oversight, and growing government
interference.
Figure 139: Map of Slovakia in Europe
Population
5,445,802 (July 2016 est.)
Capital city
Bratislava
Currency
euro (EUR)
Unemployment
9.8%
GDP – Per Capita
31,200 USD
99
Exports
74.35 USD billion (2016 est.)
Exports - commodities:
vehicles and related parts, machinery and electrical equipment, nuclear reactors and furnaces, iron
and steel, mineral oils and fuels
Exports - partners:
Germany 22.7%, Czech Republic 12.5%, Poland 8.5%, Austria 5.7%, Hungary 5.7%, France 5.6%, UK
5.5%, Italy 4.5%
Figure 140: Exports partners in Slovakia
Imports
71.47 USD billion (2016 est.)
Imports - commodities:
machinery and electrical equipment, vehicles and related parts, nuclear reactors and furnaces, fuel
and mineral oils
Imports - partners:
Germany 19.4%, Czech Republic 17.4%, Austria 9.1%, Hungary 6.3%, Poland 6.3%, South Korea 5.5%,
Russia 5.2%, China 4.1%
100
Figure 141: Imports partners in Slovakia
Figure 142: Development of Slovakia exports and imports with China
Figure 143: Imports of Slovakia in products with China
101
Figure 144: Exports of Slovakia in products with China
102
Slovenia
Economy and Demographic
With excellent infrastructure, a well-educated work force, and a strategic location between the Balkans
and Western Europe, Slovenia has one of the highest per capita GDPs in Central Europe, despite having
suffered a protracted recession in 2008-2009 in the wake of the global financial crisis. Slovenia became
the first 2004 EU entrant to adopt the euro (on 1 January 2007) and has experienced one of the most
stable political transitions in Central and Southeastern Europe.
In March 2004, Slovenia became the first transition country to graduate from borrower status to donor
partner at the World Bank. In 2007, Slovenia was invited to begin the process for joining the OECD; it
became a member in 2012. However, long-delayed privatizations, particularly within Slovenia’s largely
state-owned and increasingly indebted banking sector, have fueled investor concerns since 2012 that
the country would need EU-IMF financial assistance. In 2013, the European Commission granted
Slovenia permission to begin recapitalizing ailing lenders and transferring their nonperforming assets
into a “bad bank” established to restore bank balance sheets. Export-led growth fueled by demand in
larger European markets pushed GDP growth to 3.0% in 2014, while stubbornly-high unemployment
fell slightly to 12%.
Figure 145: Map of Slovenia in Europe
Population
1,978,029 (July 2016 est.)
Capital city
Ljubljana
Currency
euro (EUR)
Unemployment
GDP – Per Capita
11.6%
32,000 USD
103
Exports
27.2 USD billion (2016 est.)
Exports - commodities:
manufactured goods, machinery and transport equipment, chemicals, food
Exports - partners:
Germany 19.1%, Italy 10.6%, Austria 8%, Croatia 6.8%, Slovakia 4.7%, Hungary 4.4%, France 4.2%
Figure 146: Exports partners in Slovenia
Imports
25.52 USD billion (2016 est.)
Imports - commodities:
machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, food
Imports - partners:
Germany 16.5%, Italy 13.6%, Austria 10.2%, China 5.5%, Croatia 5.1%, Turkey 4%
Figure 147: Imports partners in Slovenia
104
Figure 148: Development of Slovenia exports and imports with China
Figure 149: Imports of Slovenia in products with China
105
Figure 150: Exports of Slovenia in products with China
106
Spain
Economy and Demographic
Economy - overview: After experiencing a prolonged recession in the wake of the global financial crisis
that began in 2008, in 2014 Spain marked the first full year of positive economic growth in seven years,
largely due to increased private consumption. At the onset of the financial crisis, Spain's GDP
contracted by 3.7% in 2009, ending a 16-year growth trend, and continued contracting through most
of 2013. In 2013, the government successfully shored up struggling banks - exposed to the collapse of
Spain's depressed real estate and construction sectors - and in January 2014 completed an EU-funded
restructuring and recapitalization program.
Until 2014, credit contraction in the private sector, fiscal austerity, and high unemployment weighed
on domestic consumption and investment. The unemployment rate rose from a low of about 8% in
2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 22% in 2015. High
unemployment strained Spain's public finances, as spending on social benefits increased while tax
revenues fell.
Figure 151: Map of Spain in Europe
Population
48,563,476 (July 2016 est.)
Capital city
Madrid
Currency
euro (EUR)
Unemployment
19.7%
GDP – Per Capita
36,500 USD
107
Exports
266.3 USD billion (2016 est.)
Exports - commodities:
machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods
Exports - partners:
France 15.7%, Germany 11%, Italy 7.4%, UK 7.4%, Portugal 7.1%, US 4.5%
Figure 152: Exports partners in Spain
Imports
287.9 USD billion (2016 est.)
Imports - commodities:
machinery and equipment, fuels, chemicals, semi-finished goods, foodstuffs, consumer goods,
measuring and medical control instruments
Imports - partners:
Germany 14.4%, France 11.7%, China 7.1%, Italy 6.5%, Netherlands 5%, UK 4.9%
Figure 153: Imports partners in Spain
108
Figure 154: Development of Spain exports and imports with China
Figure 155: Imports of Spain in products with China
109
Figure 156: Exports of Spain in products with China
110
Sweden
Economy and Demographic
Sweden has achieved an enviable standard of living with its combination of free-market capitalism and
extensive welfare benefits. Sweden remains outside the euro zone largely out of concern that joining
the European Economic and Monetary Union would diminish the country’s sovereignty over its welfare
system. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented
toward foreign trade.
Economic growth slowed in 2013, as a result of continued economic weakness in Sweden’s European
trading partners; Sweden’s economy experienced modest growth in 2014-15, with real GDP growth
above 2%, but continues to struggle with deflationary pressure.
Figure 157: Map of Sweden in Europe
Population
9,880,604 (July 2016 est.)
Capital city
Stockholm
Currency
Swedish Krona (SEK)
Unemployment
6.9%
GDP – Per Capita
49,700 USD
111
Exports
147.3 USD billion (2016 est.)
Exports - commodities:
machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals
Exports - partners:
Norway 10.3%, Germany 10.3%, US 7.7%, UK 7.2%, Denmark 6.8%, Finland 6.7%, Netherlands 5.2%,
Belgium 4.4%, France 4.2%
Figure 158: Exports partners in Sweden
Imports
134.9 USD billion (2016 est.)
Imports - commodities:
machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs,
clothing
Imports - partners:
Germany 17.9%, Netherlands 8.1%, Norway 7.8%, Denmark 7.7%, China 6%, UK 5.5%, Finland 4.6%,
France 4.3%, Belgium 4.3%
112
Figure 159: Imports partners in Sweden
Figure 160: Development of Sweden exports and imports with China
Figure 161: Imports of Sweden in products with China
113
Figure 162: Exports of Sweden in products with China
114
United Kingdom
Economy and Demographic
The UK, a leading trading power and financial center, is the third largest economy in Europe after
Germany and France. Agriculture is intensive, highly mechanized, and efficient by European
standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large
coal, natural gas, and oil resources, but its oil and natural gas reserves are declining; the UK has been
a net importer of energy since 2005. Services, particularly banking, insurance, and business services,
are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still
accounts for about 10% of economic output.
In 2008, the global financial crisis hit the economy particularly hard, due to the importance of its
financial sector. Falling home prices, high consumer debt, and the global economic slowdown
compounded Britain's economic problems, pushing the economy into recession in the latter half of
2008 and prompting the then BROWN (Labour) government to implement a number of measures to
stimulate the economy and stabilize the financial markets.
Figure 163: Map of United Kingdom in Europe
Population
64,430,428 (July 2016 est.)
Capital city
London
Currency
British Pound (GBP)
Unemployment
GDP – Per Capita
5.1%
42,500 USD
115
Exports
412.1 USD billion (2016 est.)
Exports - commodities:
manufactured goods, fuels, chemicals; food, beverages, tobacco
Exports - partners:
US 14.6%, Germany 10.1%, Switzerland 7%, China 6%, France 5.9%, Netherlands 5.8%, Ireland 5.5%
Figure 164: Exports partners in United Kingdom
Imports
581.6 USD billion (2016 est.)
Imports - commodities:
manufactured goods, machinery, fuels; foodstuffs
Imports - partners:
Germany 14.8%, China 9.8%, US 9.2%, Netherlands 7.5%, France 5.8%, Belgium 5%
Figure 165: Imports partners in United Kingdom
116
Figure 166: Development of United Kingdom exports and imports with China
Figure 167: Imports of United Kingdom in products with China
117
Figure 168: Exports of United Kingdom in products with China
118
Conclusions & Recommendations
In all the countries mentioned above, the graphs of the exports to China as well as imports to China
have increasing character except for Croatia, Cyprus, and Luxembourg. As for the export, China belongs
to the main partner of only four mentioned countries, namely Denmark, Germany, Finland, and the
United Kingdom. On the other hand, China belongs to the main importing partners for most of the
countries, except for Portugal, Lithuania, Latvia, Croatia, and Bulgaria. The situation on the Czech
market is the same as in most of the countries. Based on that, we suggest following recommendations:
➢ Further support the export plans of Czech companies by organizing seminars on product
demand in China, problematic issues regarding the specifics of the Chinese market;
➢ Chinese market still represents unused potential for Czech exporters. SMEs are interested in
using the help of state agencies by joining the trade missions to enlarge their Chinese
purchasers. Such trade missions are often so expensive, that they become unreachable for
SMEs. In regard with the importance of personal contact with the Chinese client, the state
agencies could support SMEs by mediating contacts by less financially demanding tasks. Such
possibilities include participation at the trade missions only for chosen mission phases;
subsidies for SMEs for the trade missions paid regarding to the schedule of instalments or
mediating contacts via electronic media services. The governmental agencies could further
actively support the development of the Europe Enterprise Network regarding such activities.
➢ Actively support change from the passive trade balance to the active trade balance;
➢ Encourage creation of export consortiums of Czech SMEs.
119
Chinese investments in the EU
Investment flows show great untapped potential, especially considering the size of the two respective
economies. China accounts for just 2-3% of overall European investments abroad, whereas Chinese
investments in Europe are rising, but from an even lower base. The comprehensive EU-China
Investment Agreement aims to tap into this potential to the benefit of both sides.
Agreement to launch negotiations for an investment agreement was reached at the EU-China Summit
of February 2012. In October 2013, the EU's Member States gave the European Commission a
negotiating mandate and on 21 November 2013 the launch of negotiations was announced at the 16th
EU-China Summit. The first round of negotiations about an EU-China investment agreement took place
in Beijing on 21-23 January 2014. In 2016, EU and China continue intensive talks on details of the
bilateral agreement.
A comprehensive EU-China investment agreement will benefit both the EU and China by ensuring that
markets are open to investment in both directions. It will also provide a simpler, secure and predictable
legal framework to investors in the long term. The EU sees an investment agreement with China as an
important element in closer trade and investment ties between our economies. One of the EU's
priorities in the negotiations will be to remove barriers to EU investors on the Chinese market.
“The current level of bilateral investment between the EU and China is way below what could be
expected from two of the most important economic blocks on the planet. Whereas goods and services
traded between the EU and China are worth well over €1 billion every day, just 2.1% of overall EU
Foreign Direct Investment (FDI) is in China. The main purpose for these negotiations is the progressive
abolition of restrictions on trade and foreign direct investment and to improve access to the Chinese
market for EU investors”, said John Clancy, EU Trade Spokesman. On the other hand, Chinese directly
invests about 8% of overall FDI to Europe, and the amount of the investments is still growing.
About 16 + 1
16 + 1 is a project which connects sixteen Central and Eastern European Countries (CEEC) and China.
The 16 + 1 cooperation started in 2012 when China initiated an interest to expand the cooperation
with five Balkan Countries and eleven EU States which are: Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Poland,
Romania, Serbia, Slovakia, and Slovenia. The 16 + 1 format focuses on cooperation in fields of
investments, science, education, culture, transport, and finance. The People’s Republic of China
outlined the 3 priorities of potential economic collaboration: infrastructure, high technologies, and
green technologies.
The first meeting was in 2012 in Warsaw, where the leaders of China and CEEC met to discuss the
partnership between China and CEEC. The Prime Minister of China has initiated the cooperation in
Warsaw and entitled the framework document China's Twelve Measures for Promoting Friendly CEEC.
Since then, several events of China-CEEC cooperation were organized as well as summits were held
120
every year. In 2013 there were China-CEEC summit in Bucharest, Romania, in 2014 in Belgrade, Serbia
and in 2015 in Suzhou, China. The very last summit was held this year in Riga, Latvia. The 5 th meeting
of Heads of Government of CEEC and China provided the opportunity to evaluate the progress of 16 +
1 since its start in 2016. The Leaders of 16 + 1 has confirmed the support for the China-CEEC
cooperation as well as the Adriatic-Baltic-Black Sea Seaport Cooperation (the ports at the Adriatic,
Baltic and Black Sea and along the inland waterways). The summit in Riga concluded in the document
“The Riga Guidelines for Cooperation between China and Central and Eastern European Countries”
which summarized the meeting and the future of 16 + 1. The Participants of the summit supported
Hungary in hosting the 6th China-CEEC Summit in 2017.
121
Chinese companies in Europe
Geographical distribution
The largest numbers of the Chinese companies are concentrated in the large belt of countries crossing
the middle of the Europe, ranging from the Netherlands, Germany, to the Central Europe, to the
Eastern part of Balkan. Majority of them are situated in the CEE countries.
Figure 169: Geographical distribution of Chinese firms in Europe (numbers) 2013
However, if we look closely at the character of these companies in regards to the new jobs created,
the largest companies are situated in the Western European countries, Sweden, Russia, and in much
smaller scale in Romania. The Chinese owned firms in CEE countries do not generate many new jobs.
One reason for that is the fact that a lot of these companies are small restaurants that offer only couple
of individual jobs, or simply rather small or medium-sized companies.
122
Figure 170: Geographical distribution (employment) 2013
As for the assets, they are almost exclusively concentrated in the Western and Northern part of Europe,
with a smaller overlap to Portugal and Spain.
Figure 171: Geographical distribution (assets) 2013
123
If we look closely on the Chinese companies in Europe regarding their character, noticeable differences
in their geographical structure can be found. As for the less knowledge intensive service companies
(that is services and business operations non-reliant on professional knowledge), these are
concentrated mostly in Romania, Bulgaria, Serbia, Hungary, Czech Republic, and more scattered in
Germany. On the other hand, Chinese knowledge intensive service companies (offering such services
as engineering and computer services, legal, accountancy, management consultancy or marketing
services) are situated mainly in Germany, Netherlands, and the United Kingdom. They are represented
in CEE countries as well, but in visibly smaller scale.
Figure 172: Chinese less knowledge intensive service companies (numbers) 2013
Figure 173: Chinese knowledge intensive service companies (numbers) 2013
124
As for the manufacturing companies, the distribution is less differentiated than above. The highest
concentration of the Chinese low tech manufacturing companies is in the Eastern Balkan, and Western
part of Germany. Smaller numbers of manufacturing companies are scattered around the Europe.
Figure 174: Chinese low tech manufacturing companies (numbers) 2013
Chinese high tech manufacturing companies are again concentrated in Germany, United Kingdom,
Netherlands, and in smaller scales in Russia and Romania. A limited number of such companies can be
found in Poland, Czech Republic, Italy, France, and Serbia.
Figure 175: Chinese high tech manufacturing companies (numbers) 2013
125
Chinese investments in CEE
Data
126
Chinese FDI into 16 CEE countries
in years 2007-2014 (mio. USD)
1800,00
1696,51
1600,00
1334,00
1400,00
1435,76
1200,00
1000,00
852,58
948,62
800,00
600,00
400,00
301,00
348,15
390,60
2007
2008
2009
200,00
0,00
2010
2011
2012
2013
Distribution of the Chinese FDI in CEE in 2014
4,45%
95,55%
6 countries with the most Chinese FDI
127
Other 10 countries
2014
Chinese FDI in CEE in 2003-2014 in Mio.USD
(comparison of 6 countries with the highest amount of
Chinese FDI)
600
500
400
300
200
100
0
2003
2004
Hungary
2005
2006
Poland
2007
2008
Czech Republic
2009
2010
Bulgaria
2011
2012
Romania
2013
2014
Slovakia
Individual Countries
Chinese FDI in Hungary in years 2003-2014
(mio. USD)
600
465,7 475,35
500
507,41
532,35
556,35
400
300
200
100
0
53,65
5,43
5,42
2,81
2003
2004
2005
2006
97,41
78,17 88,75
2007
2008
128
2009
2010
2011
2012
2013
2014
Chinese FDI in Poland in years 2003-2014
(mio. USD)
350
329,35
300
257,04
250
201,26 208,11
200
140,31
150
87,18
100
50
0
2,72
2,87
2003
2004
98,93
109,93
100,3
12,39
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Chinese FDI in the Czech Republic
in years 2003-2014 (mio. USD)
300
242,69
250
202,45 204,68
200
150
100
50
0
0,33
1,11
1,38
2003
2004
2005
14,67 19,64
2006
2007
32,43
49,34 52,33
6,68
2008
129
2009
2010
2011
2012
2013
2014
Chinese FDI in Bulgaria in years 2003-2014
(mio. USD)
250
191,37
200
149,85
150
126,74
100
72,56
50
0
0,6
1,46
2,99
4,74
4,74
4,74
2,31
18,6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Chinese FDI in Romania in years 2003-2014
(mio. USD)
180
170,27
161,09
160
145,13
140
124,95 125,83
120
100
85,66
80
65,63
60
40
29,75 31,1
93,34
72,88
39,43
20
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
130
Chinese FDI in Slovakia in years 2003-2014
(mio. USD)
140
127,79
120
100
86,01 82,77
80
60
40
25,78
20
0
0,1
0,1
0,1
0,1
2003
2004
2005
2006
5,1
5,1
2007
2008
9,36
9,82
2009
2010
2011
2012
2013
2014
Chinese FDI in Serbia in years 2007-2014
(mio. USD)
35
29,71
30
25
18,54
20
15
10
5
2
2
2,68
2007
2008
2009
4,84
5,05
2010
2011
6,47
0
131
2012
2013
2014
Chinese FDI in Lithuania in years 2005-2014
(mio. USD)
14
12,48
12,48
2013
2014
12
10
8
6,97
6
4
3,93
3,93
3,93
3,93
3,93
3,93
3,93
2005
2006
2007
2008
2009
2010
2011
2
0
2012
Chinese FDI in Croatia in years 2005-2014
(mio. USD)
14
11,87
12
10
8
7,84
7,84
8,1
8,13
8,18
2007
2008
2009
2010
2011
8,63
8,31
2012
2013
6
4
2
0,75
0,75
2005
2006
0
132
2014
Chinese FDI in Albania in years 2005-2014
(mio. USD)
8
7
7,03
7,03
2013
2014
6
5
4,35
4,43
4,43
4,43
2009
2010
2011
2012
4
3
2
1
0,5
0,51
0,51
0,51
2005
2006
2007
2008
0
Chinese FDI in Bosna and Herzegovina
in years 2003-2014 (mio. USD)
7
6
5,92
5,98
6,01
6,07
6,13
6,13
2009
2010
2011
2012
2013
2014
5
4,01
4
3,51
3,51
3,51
3,51
2005
2006
2007
2008
3
2
1,46
1
0
2003
2004
133
Chinese FDI in Slovenia in years 2005-2014
(mio. USD)
6
5
5
5
5
5
5
5
2009
2010
2011
2012
2013
2014
4
3
2
1,4
1,4
1,4
2006
2007
2008
1
0,12
0
2005
Chinese FDI in Estonia in years 2005-2014
(mio. USD)
8
7,5
7,5
7,5
7
6
5
4
3,5
3,5
3,5
2012
2013
2014
3
2
1,26
1,26
1,26
1,26
2005
2006
2007
2008
1
0
2009
134
2010
2011
Chinese FDI in Macedonia in years 2005-2014
(mio. USD)
2,5
2,09
2,11
2013
2014
2
1,5
1
0,5
0,2
0,2
0,2
0,2
0,2
0,2
0,2
0,26
2005
2006
2007
2008
2009
2010
2011
2012
0
Chinese FDI in Latvia in years 2003-2014
(mio. USD)
2,5
2,31
2
1,61
1,61
1,61
1,5
1
0,57
0,57
0,54
0,54
0,54
0,54
0,54
0,54
2007
2008
2009
2010
2011
2012
2013
2014
0,5
0
2003
2004
2005
2006
135
Chinese FDI in Montenegro in years 2007-2014
(mio. USD)
0,35
0,32
0,32
0,32
0,32
0,32
0,32
0,32
0,32
2007
2008
2009
2010
2011
2012
2013
2014
0,3
0,25
0,2
0,15
0,1
0,05
0
136
Chinese FDI
Hungary, Poland, Czech Republic, Romania, Bulgaria,
Slovakia
Hungary
Chinese FDI in 2014:
556,35 mio. USD
Main sectors:
chemical industry, IT/ICT, manufacturing, telecommunications,
electronics, trade, wholesales or retails, banking, hotels and
catering, logistics, real estate and consultancy
Major investors:
Wanhua, Huawei, ZTE Corporation, Lenovo, Sevenstar Electronics
Co., BYD Electronics, Comlink
Main form of investment:
greenfield
According to the Hungarian Investment and Trade Agency (HITA), more than 5,000 Chinese companies
operate in Hungary. Most of them are small, operating in the retail sector. Hungary is very attractive
for the Chinese investors, because of the historically good political relations, and convenient
geopolitical position, that makes other European markets easily accessible. Also, Hungary offers special
incentives for foreign investors from outside the EU that enables them to receive a residence visa
through investing in Special Hungarian Government Bonds. The certain influence on the incoming
investors may surely be the largest Chinese diaspora in the region living in Hungary. Although the
Chinese FDI represent only a small share of total FDI stock in Hungary, they have created a certain
amount of new jobs and contributed to the growth of the country during the crisis.
Poland
Chinese FDI in 2014:
329,35 mio. USD
Main sectors:
electronic sector, electro-machinery, heavy machinery, publishing
and printing, manufacturing of metals and metal products,
hospitality and real estate, distribution of goods and IT sector
Major investors:
LiuGong Machinery, Haoneng Packaging, Shanxi Yuncheng Platemaking Group, Sino Frontier Properties Ltd., Suzhou Victory
Precision Manufacture co., TPV Technology Ltd.
Main form of investment:
greenfield; partially also M&A
About 700 companies with Chinese capital are operating in Poland, but less than 20% of them have
more than 10 employees. Poland is an attractive country for Chinese investors, because of the
relatively cheap and well-educated Polish labor force. Also, Poland was offering a kind of credit
137
cooperation for Chinese companies that granted them credit of up to 285 Mio. USD for exports of
machinery. However, overall, Chinese FDI, represent only about 0.1 % of Poland’s total FDI stock.
Czech Republic
Chinese FDI in 2014:
242,69 mio. USD
Main sectors:
Electronics, IT/ICT, transport equipment, food, media, aviation
Major investors:
Changhong Europe Electric, Huawei, ZTE Corporation, Noark, Cosco
Main form of investment:
greenfield
There are about 2,000 Chinese-owned companies in the Czech Republic. In terms of cheap and
available labor, Czech Republic is far less attractive than Poland or Hungary. The amount of the Chinese
FDI is much lower than those of other Asian investors, and the number of newly created jobs falls
behind as well. However, investments from China are strongly supported by the Czech government,
and growth is expected in the future.
Bulgaria
Chinese FDI in 2014:
191,37 mio USD
Main sectors:
IT/ICT, television, agriculture
Major investors:
Huawei, ZTE Corporation, Shanghai Video and Audio Electronics,
Great Wall Motors, Tianjin State Farms, Insigma Tech
Main form of investment:
greenfield
Chinese FDI in Bulgaria are mostly flowing to the Chinese less knowledge intensive service companies,
and low tech manufacturing companies. Thanks to the cheap labor costs, more investments in this
region are expected, especially in the factory projects.
Romania
Chinese FDI in 2014:
170,27 mio USD
Main sectors:
IT/ICT, tobacco, agriculture, machinery, transportation
Major investors:
Huawei, ZTE Corporation, Shantuo Agricultural Machinery
Equipment, China Tobacco, China Shipping, COSCO, Shanxi
Yuncheng
Main form of investment:
greenfield
Similarly, as in Bulgaria, FDI are flowing mostly to the Chinese less knowledge intensive service
companies, and low tech manufacturing companies. Chinese FDI make only about 2% of the total FDI.
138
Slovakia
Chinese FDI in 2014:
127,79 mio USD
Main sectors:
telecommunications, automotive supplements
Major investors:
Lenovo, SaarGummi, ZVL Auto, Heiland Sinoc Automotive, Inalfa
Roof Systems, Mesnac European Research and Technical Centre,
Huawei, IEE Sensing Slovakia, Flame Shoes
Main form of investment:
greenfield
There are almost no active Chinese companies in Slovakia. The government is mildly promoting the
Chinese investments to the Slovak Republic, but the country not very attractive to China due to
almost non-existing deeper relations.
139
Chinese investments in CEE
Conclusion
CEE is very attractive for Chinese FDI for many reasons. The main objective of Chinese activities in the
region is to secure the transportation networks for the Silk Road, and CEE countries with their
geopolitically convenient location are ideal for this goal. Also, Chinese labor costs are increasing and
CEE countries offer ideal solution to the situation by relatively low labor costs of well-educated workers.
Besides that, reduction of costs of transport and new and unused market opportunities in the region
make the region interesting, and allow China further capital expansion across the EU.
Chinese FDI into CEE are growing every year. According to the table based on data from MOFCOM,
almost 96% of the FDI in CEE are directed into six countries: Hungary, Poland, Czech Republic, Bulgaria,
Romania, Slovakia. In all the six countries, the amount of the FDI is increasing in the long-term. Most
of FDI has been flowing to Hungary since 2010 and is more than 40% higher than that of Poland.
On the other hand, the Baltic states do not experience visible increase of Chinese FDI. The growth in
Lithuania is rather stagnating, very slow, often keeping at the same values. The FDI investments in
Estonia and Latvia even have decreasing tendency in the long-term. During the last years, no new
Chinese investments were made in these two countries. The rest of the CEE countries show stagnation
or only mild increase in the Chines FDI.
In the Western Europe, Chinese FDI are connected primarily with M&A and joint ventures activities. In
CEE countries Chinese tend to invest more in the greenfield projects. In comparison to the overall GDP
of the countries or even only total FDI, Chinese FDI remain at rather low levels, and in some countries,
these levels even have decreasing tendency.
The Czech Republic is the third most favorite CEE country for Chinese investors. However, in regard to
the higher labor costs in comparison with other CEE countries, higher taxation, and low unemployment
rates, the Chinese FDI may soon be directed to the countries, especially to the Eastern Balkan, Hungary
or Poland. Therefore, we suggest the following:
➢ Support more high-quality investments rather than investments to the low intensive service
companies and manufactories by providing more tax and other incentives for Chinese
companies, especially for those coming with R&D activities,
➢ Support the technology transfer between the Chinese and Czech companies,
➢ Governmental institutions could provide further support to SMEs by organizing seminars,
spreading information, and offer consultancy services for the SMEs linking with incoming
Chinese direct investors,
➢ Encouraging partnerships between Chinese companies and local research centers.
140
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