Abstract

Enhancing the understanding of China-EU energy relations, the article examines Chinese energy investments in Europe from 2008 to 2015 and analyzes the energy interests and policy approaches underpinning them. Analysis of this data shows that within the EU, 30 Chinese investments largely focused on the oil and gas sector, especially through the acquisition of company shares. Chinese energy investments in Europe reflect a clear political and commercial strategy that addresses the PRC’s need to balance supply chain security of fossil fuels, environmentally friendlier energy production and use as well as to enhance the market position and energy-industrial capabilities of Chinese state-owned or state-supervised energy companies. Based on a comprehensive set of domestic incentives for international investment the Chinese penetration of the European energy sector is embedded within two levels of political cooperation. The first level revolves around bilateral investment agreements between China and 27 EU member states. On the second level, China and the EU have established a variety of formats that guide their energy cooperation. The conclusion of the proposed bilateral investment agreement between the PRC and the EU would create a uniform investment environment across the continent and facilitate mutual economic benefits for both parties.

Introduction

In its 12th Five-Year Plan (2011–۲۰۱۵), the People’s Republic of China (PRC) aimed to reconcile short-term economic growth with a more sustainable long-term approach to economic, social and environmental development. The 13th plan (2016–۲۰۲۰) points in a similar direction as it suggests a stronger focus on sustainable growth, environmentally friendlier industrial infrastructure development and a lowered dependence on carbon-emitting fuels and technologies (Xinhua, 2015a, 2015b, 2016; Kennedy and Johnson, 2016).