Home >

Issues >

3/2023 >

Article

3 2023 Okladka_1

ISSUE: 3/2023

  • Volume 27
  • Number 3
  • 2023

Subscribe NEWSLETTER

Studia Europejskie –
Studies in European Affairs

ISSN: 1428-149X
e-ISSN: 2719-3780

Ccbync License

License

Articles published in the journal are under a Creative Commons Attribution – Non Commercial – No Derivatives 4.0 International License

The EU Framework for the Screening of Foreign Direct Investment as a Response to the Belt and Road Initiative in the Post-COVID Era

Jakub Kociubiński

Keywords:
 

Abstract

After the limbo caused by the COVID-19 pandemic, Chinese investments have picked up in the first quarter of 2023. Investments through China’s Belt and Road Initiative are carried out by approaching potential participants individually, or via dedicated platforms outside the EU’s legal and institutional framework. Thus, the EU Framework for the Screening of Foreign Direct Investment – which is likely to get its so-called “baptism of fire” after its COVID-induced hibernation – can be seen as an implicit response to said Chinese initiative. This framework should be considered a message directed simultaneously towards foreign actors, discouraging them from attempting to carry out investments in the EU with the intention of bypassing the relevant European rules, and also towards Member States, cautioning them against facilitating such operations. The author will argue that the regulatory model has too many in-built unknowns that could prevent the framework from achieving its objectives.

References

Albore (2000) C-423/98, ECLI:EU:C:2000:401. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=45100&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1629894 (Access 17.08.2023).

Arens-Sikken (2008) C-43/07, ECLI:EU:C:2008:490. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=67987&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1629112 (Access 17.08.2023).

Babić, M. and Dixon, A. (2022) “Is the China Effect Real? Ideational Change and the Political Contestation of Chinese State-Led Investment in Europe”, The Chinese Journal of International Politics. Vol. 15(2), pp. 111–139. DOI: https://doi.org/10.1093/cjip/poac009.

Barnard, C. (2016) The substantive law of the EU: the four freedoms. Oxford: Oxford University Press.

Barton, B. (2021) “The Belt-and-Road Initiative as a paradigm change for European Union-China security cooperation? The case of Central Asia”, Asia Europe Journal. Vol. 19, pp. 391–409. DOI: https://doi.org/10.1007/s10308-021-00606-6.

Bismuth, R. (2019) Reading Between the Lines of the EU Regulation Establishing a Framework for Screening FDI into the Union in Bourgeois, J. (ed.) EU Framework for Foreign Direct Investment Control. Alphen aan den Rijn: Kluwer Law International. DOI: https://doi.org/10.54648/cola2020759.

Braw, E. (2020) How China Is Buying Up the West’s High-Tech Sector. Foreign Policy. Available at: https://foreignpolicy.com/2020/12/03/how-china-is-buying-up-the-wests-high-tech-sector/ (Access 10.08.2023).

Chaisse J. (2019) China’s international investment strategy: bilateral, regional, and global law and policy. Oxford: Oxford University Press. DOI: https://doi.org/10.1163/24689017_00401018.

Centro-Com (1997) C-124/95, ECLI:EU:C:1997:8. Available at: https://curia.europa.eu/juris/showPdf.jsf?text=&docid=100435&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1639561 (Access 17.08.2023).

Commission v Belgium (Golden Shares III) (2002) C-503/99, ECLI:EU:C:2002:328. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=47379&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1634338 (Access 17.08.2023).

Commission v France (Golden Shares II) (2002) C-483/99, ECLI:EU:C:2002:327. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=47378&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1634088 (Access 17.08.2023).

Commission v France (Spanish Strawberries) (1997) C-265/95, ECLI:EU:C:1997:595. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=43536&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1636728 (Access 17.08.2023).

Commission v Portugal (Golden Shares I) (2002) C-367/98, ECLI:EU:C:2002:326. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=47377&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1633865 (Access 17.08.2023).

Commission v Spain (Golden Shares IV) (2003) C-463/00, ECLI:EU:C:2003:272. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=48279&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1634643 (Access 17.08.2023).

Commission v United Kingdom (Tachographs) (1979) C-128/78, ECLI:EU:C:1979:32. Available at: https://curia.europa.eu/juris/showPdf.jsf?text=&docid=90103&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1635711 (Access 17.08.2023).

Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items (Offi cial Journal L 134, 29 May 2009, p. 1). Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32009R0428 (Access 10.08.2023).

Das, R.C. (2017) Handbook of research on economic, fi nancial, and industrial impacts on infrastructure development. Hershey, Pa: Igi Global. DOI: 10.4018/978-1-5225-2361-1.

Engberg, J. (2016) Autonomous EU Concepts: Fact or Fiction? in Šarčević, S. (ed.) Language and Culture in EU Law. London: Routledge. DOI: https://doi.org/10.4324/9781315591445-18.

Eurobolt BV (2019) C-644/17, ECLI:EU:C:2019:555. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=215764&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1641058 (Access 17.08.2023).

European Parliament (2017) Foreign direct investment screening. A debate in light of China-EU FDI fl ows, EPRS (European Parliamentary Research Service), PE 603.941. Available at: https://www.europarl.europa.eu/RegData/etudes/BRIE/2017/603941/EPRS_BRI(2017)603941_EN.pdf (Access 10.08.2023).

Explanatory Memorandum. Proposal for a Regulation establishing a framework for screening foreign direct investments into the EU COM(2017) 487 final. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52017PC0487 (Access 10.08.2023).

FKP Scorpio (2006) C-290/04, ECLI:EU:C:2006:630. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=65389&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1640511 (Access 17.08.2023).

Foto-Frost (1987) 314/85, ECLI:EU:C:1987:452. Available at: https://curia.europa.eu/juris/showPdf.jsf?text=&docid=94312&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1638269 (Access 17.08.2023).

Fratzscher, M. (2020) “Populism, Protectionism and Paralysis”, Intereconomics. Vol. 55(1), pp. 2–3. DOI: https://doi.org/10.1007/s10272-020-0859-3.

Hindelang, S. (2009) The Free Movement of Capital and Foreign Direct Investment. Oxford: Oxford University Press.

Jäger (2008) C-256/06, ECLI:EU:C:2008:20. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=69717&pageIndex=0&doclang=EN&mode=lst&dir=&occ=fi rst&part=1&cid=1627900 (Access 17.08.2023).

Jakab, A. and Kochenov, D. (2017) The enforcement of EU law and values: ensuring member states’ compliance. Oxford: Oxford University Press. DOI: https://doi.org/10.54648/euro2018020.

James, H. (2018) “Deglobalization: The rise of disembedded unilateralism”, Annual Review of Financial Economics. Vol. 10, pp. 219–237. DOI: https://doi.org/10.1146/annurev-fi nancial-110217-022625.

Jipa (2008) C-33/07, ECLI:EU:C:2008:396. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=67583&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1631140 (Access 17.08.2023).

Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Baank. Connecting Europe and Asia – Building blocks for an EU Strategy EU-Asia Connectivity Strategy JOIN(2018) 31 fi nal. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=JOIN:2018:031:FIN (Access 10.08.2023).

Klamert, M. (2014) The principle of loyalty in EU law. Oxford: Oxford University Press.

Kowalski, B. (2018) The Belt and Road Initiative, China’s Foreign Policy and the XIX Party Congress in Cvetković, V.N. (ed.) The New Silk Road. Belgrade: University of Belgrade. DOI: https://doi.org/10.18485/fb_nsr.2018.ch5.

Official Journal L 79, 21 March, pp. 1–14. Available at: https://eur-lex.europa.eu/eli/reg/2019/452/oj (Access 10.08.2023).

Ploberger, F. (2019) Political Economic Perspectives of China’s Belt and Road Initiative: Reshaping Regional Integration. Milton: Routledge. DOI: https://doi.org/10.4324/9780429059636.

Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union (2019)

Reisch (2002) C-519/99 etc, ECLI:EU:C:2002:135. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=46777&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1630298 (Access 17.08.2023).

Rewe v Bundesmonopolverwaltung für Branntwein (Cassis de Dijon) (1979) 120/78, ECLI:EU:C:1979:42. Available at: https://curia.europa.eu/juris/showPdf.jsf?text=&docid=90055&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1637492 (Access 17.08.2023).

Scientologie (2000) C-54/99, ECLI:EU:C:2000:124. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=45038&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1631623 (Access 17.08.2023).

Treaty on the Functioning of the European Union (2012) Official Journal C 362, 26 October, pp. 47–390. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A12012E%2FTXT (Access 10.08.2023).

Van Duyn (1974) 41–74, Opinion of AG Mayras, ECLI:EU:C:1974:123. Available at: https://curia.europa.eu/juris/showPdf.jsf?text=&docid=88773&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1635434 (Access 17.08.2023).

Verhoeven, S.I. (2020) EU Legal Obstacles to the Belt and Road Initiative: Towards a China-EU Framework on the Belt and Road Initiative in Leandro, F. and Duarte, P. (eds.) The Belt and Road Initiative. Singapore: Palgrave Macmillan. DOI: https://doi.org/10.1007/978-981-15-2564-3_12.

Watts (2006) C-372/04, ECLI:EU:C:2006:325. Available at: https://curia.europa.eu/juris/document/document.jsf?text=&docid=56965&pageIndex=0&doclang=en&mode=lst&dir=&occ=fi rst&part=1&cid=1640302 (Access 17.08.2023).

Wolfers, A. (1952) “National Security as an Ambiguous Symbol”, Political Science Quarterly. Vol. 67(4), pp. 481–502. DOI: https://doi.org/10.2307/2145138.

Zhang, H. and Van Den Bulcke, D. (2014) “China’s direct investment in the European Union: a new regulatory challenge?”, Asia Europe Journal. Vol. 12, pp. 159–177. DOI: https://doi.org/10.1007/s10308-014-0383-9.

Zhang, J. and Xu, M. (2017) China’s belt and road initiatives and its neighboring diplomacy. New Jersey: World Scientifi c. DOI: https://doi.org/10.1007/s10308-014-0383-9.

DOI: 10.33067/SE.3.2023.5

Download pdf

Language: English

Pages: 87-104

How to Cite:

Harvard

Kociubiński, J. (2023) "The EU Framework for the Screening of Foreign Direct Investment as a Response to the Belt and Road Initiative in the Post-COVID Era". Studia Europejskie – Studies in European Affairs, 3-2023, pp. 87-104. DOI: 10.33067/SE.3.2023.5

APA
Chicago