President Xi Jinping of China is half-way through his three-day visit to Spain, en-route for a G20 meeting in Argentina. On his way ‘home’, he will be coming through Portugal. The reason: to ‘strengthen ties’ (meaning ‘eye-up investment opportunities’). It’s a direction that other EU leaders are trying to subvert. The world’s press explains:
“EU leaders are concerned that state-owned or state-financed foreign enterprises could steal European know-how in a variety of areas, such as research, space, transport, energy and telecommunications”, writes Asia Times today - stressing that a new framework sketched out with a view to start screening foreign direct investment within the bloc “is not aimed at countering China’s acquisition of high-tech European businesses, but its efforts actually seem to go in that direction”.
Developing the story, France 24 says no matter what EU leaders agree, it will be up to individual countries to “decide what they want”.
And in the case of Spain and Portugal - described as “the weak underbelly for Chinese investment in Europe” by president of Paris-based think tank Asia Centre, Jean-Francois Di Meglioas, there is little faith that either will take the moral high ground.
Di Meglioas told AFP (France’s State news agency): “Chinese investments in absolute figures are greater in Britain and in Germany, but as a percentage of GDP, they are greater in Spain and Portugal”.
The Chinese government owns a 28 percent stake in Portuguese utility EDP, via China Three Gorges and China's state-owned international investment company CNIC, while in Spain exports to China increased by 28% last year, to reach 5.7 billion euros ($6.4 billion).
Madrid is described as “hoping Xi’s visit will open the Chinese market further for Spanish products such as grapes and it’s treasured ‘jamon’ cured ham”.
Yet on the global scale, China is locked in a stiff trade war with the United States.
The US has imposed tariffs on more than $250 billion in Chinese goods in an attempt to pressure the country to reverse alleged unfair trade practices, with President Donald Trump suggesting this week that he could be ready to up the stakes and impose tariffs on China’s remaining $267 billion in imports.
Says France 24, “now is the time for Chinese leaders to make public statements to try and assuage the concerns of EU member states”.
If these are likely, they should be coming either during Xi’s visit to Spain, or once he arrives here next Tuesday.
Meantime, national papers are light on any content pointing to EU distrust of further Chinese investment.
In fact, various sources are already pointing to Xi’s visit being the chance to privatise the country’s railways (CP) and forge new partnerships over energy.
Xi Jinping’s “Silk Road” plan for the future is being heavily cited, while in Spain, the understanding is that no agreements in this regard will be signed during this week’s visit.
Asia Times explains that EU leaders’ concerns stem from 'feelings' that China has "failed to ensure a level playing field”.
While European enterprises keen to operate within China’s “vast market” have found access “restricted” for whatever reasons, the opposite has been happening to Chinese firms seeking to invest in Europe.
In three words: Europe is watching.
By NATASHA DONN natasha.donn@algarveresident.com
Article by kind permission of The Portugal Resident
Photo: taken during the visit of prime minister António Costa to China in October. At the time he described Portugal as "the gateway to Europe".
