Chinese investment in eastern EU will test cohesion

Subject

Chinese investment in CEE.

Significance

At a meeting in Budapest in late November, Chinese Premier Li Keqiang and 16 Central-East Europe (CEE) leaders agreed plans for 3 billion dollars of Chinese investment in the region. This and the event itself were symbolic of Chinese economic ambitions in CEE, part of Beijing’s Belt and Road Initiative (BRI).

Impacts

• Far smaller in volume, Chinese investment may appear to balance out EU funds, allowing more political wriggle room for CEE leaders.
• Chinese investment will directly challenge Russia’s economic influence, allowing CEE countries more foreign policy latitude.
• Chinese investment is likely to help sustain oligarchic power structures across the region.
• Competition for Chinese investments will further erode solidarity, especially in the Visegrad group.