China and the West


China's investment in the European Union is rising but remains a tiny fraction of the country's overseas investments, according to research from Leeds University Business School.

Research by Professor Jeremy Clegg and Dr Hinrich Voss shows that the world's second-largest economy invested about $6.4 billion in the EU in 2010 and $7.4 billion in 2011. But contrary to perceptions, that accounts for just 3.5% of the foreign direct investment in the 27-member European Union.

Professor Clegg and Dr Voss launched their paper - Chinese Overseas Direct Investment in the European Union - before an international audience of more than 100 people at London's Chatham House.

Professor Clegg said more should be done to encourage China's sovereign wealth funds, and private and state-backed firms to invest in the EU by reducing regulation and red tape. He added that the EU member states should co-operate more closely to win investment from China.

The report shows that of the EU states, UK and Germany have been most successful at attracting investment from China. A copy of the paper can be downloaded from

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Contact: University of Leeds Communications & Press Office: Tel +44 (0)113 343 4031, email