Taking FDI from China as an example, Figure 3 shows that there appears to be no correlation between the little FDI inflow from China into non-screening countries such as the Czech Republic, Estonia and Sweden, and the large Chinese FDI inflow into screening countries like Finland, Germany, France, Italy, Spain and the UK. Among the multitude of factors acting as (dis)incentives for foreign investors, the presence or absence of an FDI screening mechanism does not seem to be a decisive factor, notably if it operates under predictable conditions and is not extensively time-consuming.
Figure 3 – Chinese FDI transactions in EU-28 in US$ million
Chinese FDI transactions in EU-28 in US$ million
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