ABSTRACT
This paper explores recent developments in EU–China relations in the renewable energy sector, in the context of several recent high-profile trade conflicts. Our key findings are that both trade and investment from China into the EU increased markedly in the years up to 2011, but have fallen since then, most notably for trade. While trade tensions explain some of this fall, it seems more related to fundamental changes in the EU market and a rising realisation that China’s domestic market is key to the sector’s long-term development. The destination and source of Chinese investments in the EU are highly concentrated, with Germany the destination for half of investments and two Chinese provinces –Jiangsu and Zhejiang – making up 65% of the source of funds. Most of the companies investing are small, commercially oriented enterprises, indicating that market-seeking is their key objective, with strategic assets apparently less important.
Acknowledgments
Thanks to the authors of this special issue and anonymous reviewers.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
3. Figures are those for 854,140 photo-sensitive semiconductor devices, a categorisation which includes PV cells, wafers and modules.
4. Jiangsu is on the top list of Chinese provinces in terms of GDP per capita. Moreover, by the end of 2012, the outward FDI flows and stock of Jiangsu was $313.3 billion and $783.2 billion which ranked fourth and fifth in all China's provinces, respectively (MofCom website). The ‘Jiangsu's 12th Five Year Plan in Cultivation and Development of Strategic Emerging Industries’ put solar industry in the priority list of the emerging industries.
5. Classification of firms' size is based on number of employees. Large firms have ≥1000 employees. Medium firms have from 300 to 1000 employees, while small firms have less than 300.