Table Of Content

China and the EU in Context This page intentionally left blank China and the EU in Context Insights for Business and Investors Kerry Brown Professor and Director, China Studies, University of Sydney; Team Leader, Europe China Research and Advice Network; Associate Fellow, Asia Programme, Chatham House Selection, introduction and editorial content © Kerry Brown 2014 Individual chapters © Respective authors 2014 Softcover reprint of the hardcover 1st edition 2014 978-1-137-35238-5 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identiﬁ ed as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2014 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-46918-5 ISBN 978-1-137-35186-9 (eBook) DOI 10.1057/9781137351869 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Typeset by MPS Limited, Chennai, India. v Contents List of Figures and Tables ix Notes on Contributors xii List of Abbreviations xv Acknowledgements xviii Introduction: The EU and China, a Relationship in Context 1 Kerry Brown Context of the Relationship 1 Knowing Each Other Better 6 1 Chinese Overseas Direct Investment into the European Union 14 Jeremy Clegg and Hinrich Voss Introduction 14 C hinese Outward FDI Globally and the Role of the EU 16 S tructure of Chinese Global Outward FDI Distribution 16 Distribution of OFDI by Sector 17 Chinese Outward FDI in the EU 18 Structure of Intra-EU Distribution 19 Sectoral Distribution of Investments 24 C hinese Policies for Outward FDI and for FDI in the EU 30 Chinese Policies for Outward Investment 31 C hinese Policies for Outward Investment to the EU 33 China’s Outbound Investment Catalogue 33 Conclusion 37 vi CONTENTS 2 Chinese Investment in the Greater Europe Zone 44 Thierry Apoteker Introduction 44 Quantitative Review and Analysis 49 Strategies and Challenges 57 C hina’s Policy for the GEZ and the GEZ States’ Response 62 Conclusions and Recommendations 75 3 Rebalancing towards a Sustainable Future: China’s Twelfth Five-Year Programme 81 Robert Ash, Robin Porter and Tim Summers Introduction 81 The Planning Environment in China 83 T he Eleventh Five-Year Programme of Economic and Social Development 85 T he Twelfth Five-Year Programme of Economic and Social Development 88 D emographic Change, the Labour Supply and Employment 99 T he Regional Perspective: The 12FYP and China’s Changing Economic Geography 102 T he 12FYP and International Relations, with Particular Reference to the EU 105 T he 12FYP: Commercial Opportunities, with Specific Reference to the EU 106 Education 110 Science, Technology and Innovation 113 I ssues of Sustainability: Energy and the Environment 119 Conclusion 127 4 China’s Rulers: The Fifth Generation Take Power (2012–13) 142 Michael Dillon Preamble 142 Change and Continuity 143 Senior Political Appointments 145 Political Generations in China 147 CCP Factions and the Succession Process 147 (cid:3) CONTENTS vii Key Issues 148 Key Players 149 5 Social Unrest in China 178 Lynette H. Ong and Christian Göb el Introduction 178 The Changing Nature of Social Unrest 180 Issues Leading to Grievances 193 The State’s Responses to Social Unrest 200 Conclusions 205 6 Untapped Trilateralism: Common Economic and Security Interests of the European Union, the United States and China 214 Bates Gill and Andrew Small Untapped Trilateralism 214 Common Economic and Security Interests 216 Common Action: Imperatives and Impediments 229 Conclusions: Ways Forward for Collective Action 237 7 China’s Food Security: Is it a National, Regional or Global Issue? 251 David Norse, Yuelai Lu and Jikun Huang Introduction 251 C hina’s Past, Present and Future Food Supply and Demand 252 C entral and Local Government Context of Food Security Policies 272 Objectives 277 G lobal and Regional Implications of China’s Future Food Security 282 Conclusions 293 8 Migration from China to the EU: The Challenge within Europe 303 Bin Wu and Kevin Latham Introduction 303 C hinese Immigration and Its Impact on the Growth of the Chinese Diaspora in the EU 304 viii CONTENTS F actors Behind the New Wave of Chinese Immigration 306 N ew Features and Changes within Chinese Communities 309 New Challenges Facing Chinese Communities 314 Conclusions 318 Index 328 ix List of Figures and Tables Figures 1.1 D istribution of Chinese OFDI in the EU-27 by 2009 (€ million) 21 1.2 M&As by Chinese firms in the EU-27, 2000–13 (April) 23 1.3 Sector distribution in the Outbound Investment Catalogue, in force in 2013 37 2.1 China’s outward FDI flows, 2005–2012 (€ billion) 47 2.2 Map of the European Union and the Greater Europe Zone 49 2.3 China’s outward FDI flows to the GEZ, 2005–2011 (€ billion) 50 2.4 China’s outward FDI flows to the GEZ, 2005–2012 (number of deals) 51 2.5 China’s trade with and outward FDI flows to the GEZ states, 2005–2012 (€ billion) 63 3.1 T he share of fixed investment, domestic consumption and net exports in GDP growth under the 11FYP 87 5.1 The number of social unrest incidents vs economic growth rates, 1993–2005 194 5.2 Public security outlays as a percentage of budget (%) vs Gross Regional Product (GRP) per capita (Rmb), 2010 205 7.1 F ood Trade: export and import (billion EUR) in 1992–2010 254 7.2 P er capita consumption of meat, milk and other non-staple foods (kg per year) 256