ABSTRACT
This study focused on three major aspects of EUDI in China. First, it examined the evolution of the Chinese FDI policy during the last two decades and discussed its impact on FDI in China in general and EUDI in particular. The upgrading of locational factors and changing FDI policy of the Chinese government were analysed in the context of the transition of the Chinese economy towards the market system. Second, the extent and characteristics of EU subsidiaries in China were studied on the basis of a statistical analysis and questionnaire surveys. Also, their salient characteristics were compared with those of other developed economies such as the United States and Japan and Asian NIEs. Third, the report dealt with certain operational and managerial issues of EU subsidiaries in China, such as their industrial concentration, level of technology, R&D, sourcing, competitive position, autonomy of decision-making and the major difficulties experienced in their daily operations in China. Fourth, special attention was devoted to the sourcing policies of EU MNEs in China, a topic of great concern to Chinese policymakers.
