On behalf of vbw, Prognos examined the EU's economic ties with China. Trade and investment relations have intensified over many years. Chinese investors in EU countries are particularly interested in companies from industrial sectors in which Europe is a technological leader – this is one of the main results of our study about the economic ties between China and the EU for the Bavarian Industry Association (vbw). In particular, these industrial sectors include mechanical engineering, the automotive industry, as well as computer equipment, electronics, and optics. This shows: A large proportion of Chinese foreign direct investment in EU countries is going to industries which are – according to the “Made in China 2025” (MIC 2025) strategy – of strategic interest to China. Opportunities and risks China is an increasingly important investor on the world stage. EU countries – being highly developed economies with promising key technologies - are the focus of the “Going Global” strategy used by the Chinese government to encourage direct investment from Chinese companies. Both European companies and EU countriescan profit from stronger economic cooperation with China. Nevertheless, China's MIC 2025 strategy and the “New Silk Road” also pose a significant risk: The MIC 2025 strategy wants China to become a technological leader in “key industries”. The “New Silk Road” aims at expanding China’s geopolitical influence and securing the markets of tomorrow. Overall conditions for investors In addition, the authors also examined the overall conditions for investments in both countries. China is opening up to foreign direct investment but remains a highly regulated market dominated by state-owned businesses. There is no “level playing field” for Chinese and European investors – the official objective of both the EU and China. Despite various announcements, European and Chinese companies do not have comparable access to each other’s markets. As a result, European cooperation in dealing with China becomes even more important: “Only when speaking with one voice, Europe does have the weight and size needed to negotiate with China on an equal footing,” says study author Johann Weiß. Authors: Johann Weiß, Manuel Klement, Philipp Kreuzer, Sina Scheffer, Jan Trenczek Do you have questions? Your contact at Prognos Johann Weiß Senior Project Manager View profile Our work on this topic Take a look at our latest projects and activities. New procurement markets for the Bavarian economy 2023 | Project New procurement markets can help increase the resilience and efficiency of the German and Bavarian supply chains. The study quantifies the current procurement markets and those still yet to be further exploited. Read more Supply chains: no climate neutrality without raw materials 2023 | Project Crises continue to put global trade routes at risk. This study by Prognos and partners indicates the measures necessary to secure strategically important supply chains. Read more The future of the automotive industry in Saarland ongoing | Project The automotive industry continues to undergo fundamental change worldwide. How does this transformation affect the Saarland economy? Read more Increased gas prices and gas price brakes 2023 | Project A study for the vbw on the impact of the gas price brake for Bavarian companies. Read more Effects of deglobalisation on Germany and Europe 2023 | Project Increasing geopolitical tensions are endangering the world trading system. On behalf of the vbw, Prognos investigated possible consequences for the economy in Germany and the EU. Read more Article in "Die Volkswirtschaft": EU reaction to electricity prices 2023 | News The liberalisation of the electricity markets in the EU was once supposed to reduce costs. Sven Kreidelmeyer writes in the Swiss magazine "Die Volkswirtschaft" about the effects of free competition and current developments in the European electricity sector, among other things. Read more Where does Germany's economy really stand? 2023 | News Why it’s time for Germany to take an honest look at itself. A guest commentary in the WirtschaftsWoche by Dr Michael Böhmer. Read more Purpose Economy model 2023 | Project Could purpose become the model for business and society? We investigated this as part of our work for the Future Office and compared it with other scenarios. Read more Evaluation of the federal grants to GTAI 2022 | Project The aim of Germany Trade and Invest (GTAI) is to promote German foreign trade. Prognos investigated whether they are using their budget effectively. Read more Decarbonisation of raw materials industries in Germany 2022 | Project A study for the Bertelsmann Stiftung shows which climate policy measures can best support the switch to low-emission production processes. Read more Council of the Working World ongoing | Project Efforts to reduce the consumption of resources in the Bavarian economy must be further in-creased. A Prognos study provides information on the status quo and the starting points for sav-ings. Read more Gas consumption in Germany’s production sectors 2023 | Project One potential building block: the Federal Network Agency commissioned Prognos to conduct a study that can support the necessary assessment in the case of gas shortages. Read more Accelerated climate protection does pay off 2023 | Project If the expansion of renewable energy and the implementation of efficiency measures are ac-celerated, electricity prices will fall more quickly, and the GDP will grow faster. These were the findings of our short study for the INSM. Read more Ecological transformation and the labour market in Schleswig-Holstein ongoing | Project How many specialists will Schleswig-Holstein need to implement its climate protection measures? What are the key professions necessary for successful implementation? Read more Germany’s business model 2023 2023 | Project Why politicians and companies need to act consistently - and how they can do so. Joint study with BayernLB. Read more Inflation – extra burden and relief for family households 2022 | Project Calculations on inflation-related additional private household expenditure and the work of the Federal Government's relief package. Read more The effects of Chinese subsidies on Germany 2022 | Project Prognos examined the potential impact of Chinese subsidy practices on Germany in three core sectors of the German economy. Read more Benefits of Covid testing for the Swiss economy and the healthcare system 2022 | Project Testing for Covid interrupted chains of infection, relieved the burden on the health system, and supported the economy. We quantified these effects for Roche Diagnostics Switzerland. Read more Resilient supply chains in the EU 2022 | Project What are possible solutions when supply chains are disrupted due to external shocks? A survey conducted for the European Commission as part of the European Cluster Collaboration Platform provides answers. Read more Innovation Index Germany 2022 | Project How does the expansion of the digital infrastructure affect regional innovation strength? The IID.2022 provides clarification. Read more Adobe Stock - CleverStock About us Prognos – Providing Orientation. Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound. Learn more