chapter  3
18 Pages

Economic relations between China and Central and Eastern Europe

Trade and investment issues
ByÁgnes Szunomár, Agnieszka McCaleb, Xin Chen

This chapter explores the characteristics of Chinese economic relations with the 16 Central and Eastern European Countries (CEECs), focusing on investment and trade flows. It examines Chinese investment in the 16 Central and Eastern Europe (CEE) destination countries, analyzing the most important sectors, motivations and foreign direct investments (FDI) inflow trends. The chapter analyzes the future of the relationship, including the role and prospective potential of the 16 + 1 Cooperation in enhancing economic relations between China and the CEE region. As China became a major player in the world economy and politics, CEECs also became more interested in developing their relations with this Asian country. The economic and financial crisis has provided additional impetus as CEE governments began searching for new opportunities and means of recovering from the recession. In terms of the motivations behind Chinese investments in CEECs, their economic integration into the European Union (EU) has been the most important attractive factor, especially in the manufacturing sector.