Abstract:Potential job losses from direct investment in the wake of the financial crisis have become a major obstacle to Chinese companies investing in Europe. However, in terms of the volume of Chinese investment in Europe, the current share of Chinese investment is far from substantial enough to have an impact on Europe. The current severe unemployment situation in Europe has deep historical, economic and institutional roots. It is Europe's own problem and has nothing to do with the investment of Chinese enterprises. As European unemployment is the most sensitive issue in the European environment at the moment, it does affect the strategic choice of Chinese companies to invest in Europe. That is, Chinese enterprises can not directly copy the international enterprises (including European multinationals) before the crisis to the international industrial chain integration mode, must be cautious even give up "move up the value chain" investment strategy, and adopt the "extended value chain" investment strategy. In this way, the demand for foreign capital caused by unemployment in Europe can be accommodated and a win-win situation can be created between China and Europe.

Authors:Chen T.T, Liu Sh.C, Gu L.J.

International Economic Review, Vol,1, 2014. (in Chinese)