China is currently focusing on investing in more ‘friendly countries’ amidst the trade war with the West due to financial constraints, according to experts. The country’s direct investment in Europe reached a 13-year low in 2023, falling to 6.8 billion euros ($7.35 billion) from the previous year. This decline reflects China’s worsening economic situation, with its total foreign investment decreasing. The report also highlights Europe’s growing trade disputes with China, particularly in the electric vehicle sector. Hungary emerged as a top destination for Chinese investment in Europe, attracting 44% of China’s total foreign direct investment in 2023. This shift towards ‘friendly countries’ is seen as a strategic move to navigate the challenges posed by the trade war and geopolitical factors impacting China’s investment in Western Europe.
The EU Recognizes China’s Support for Russia
Mr. Chung highlighted that the EU has acknowledged the Chinese communist regime as the primary supporter of Russia following its invasion of Ukraine in 2022.
He stated, “Since 2023, the entirety of Europe has been aligning against China, whether through decoupling or de-risking, gradually aligning more closely with the United States. If the conflict expands to Europe, it will largely be due to China’s backing of Russia.”
Furthermore, he mentioned, “Looking ahead, the trade between China and Europe, which saw a decline in 2023, is expected to continue decreasing. Chinese investments in Europe will also see a significant decrease.”
Luo Ya and Li Su contributed to this report.
