Digitala Vetenskapliga Arkivet

Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The potential effects of the new FDI screening mechanism on Chinese FDI in Sweden
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2023 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Background: Regulation (EU) 2019/452 provides a European Union framework for the screening of direct investments from non-EU countries on the grounds of security or public order. It has taken effect for three years; however, Sweden is at a stage of preparatory to enact such a mechanism. This is targeted at foreign direct investments from third-world countries, Chinese companies being one of the main investors in Sweden. However, there are conflicting views on this new regulation and an overall lack of research regarding how the Regulation (EU) 2019/452 may potentially impact Chinese outbound foreign direct investment in Sweden due to the highly dynamic legal and business environment that exists in the EU and China, respectively. Sweden is one of the EU member states that has been attracting Chinese FDI in the past decade – for example, many famous Swedish companies have been acquired partially or wholly, such as Volvo Cars, Volvo AB, Polestar, Oatly, Spotify, Nevs and Acne.

Purpose: Our research focus of the relationship between the new EU FDI screening regulation and China outward FDI to EU. As China as a rising player in EU, it is interesting to assess whether Chinese investors are potentially affected by the EU FDI Screening from Sweden point of view. 

Method: We are mainly conducting quantitative and qualitative analysis based on the historical 65 M&A cases happened from 2002 to 2019, including 51 Chinese majority acquisitions of Swedish parent companies and 14 minority acquisitions, which these mino­rity holdings are included, as many are large investments and may lead to an investor’s becoming the single largest owner in a company. The identified M&A cases are analysed and categorized according to the Regulation Article 4’s specific requirement. We analyse various aspects to get insights of the potential impacts of the Regulation to China FDI in Sweden.

Conclusion:  In Sweden, we believe that the Regulation and the upcoming screening mechanism may not affect Chinese FDI in Sweden drastically due to the changes in Chinese FDI strategy and motivations from cross-border M&A to greenfield investment, and change in the role of Chinese SOEs acquiring from strategic assets to industrial and consumer advance technology. And other inferred likelihood may include, the possibility of circumventing FDI screening through portfolio investment and direct ownership and transfer of technology and assets.

Place, publisher, year, edition, pages
2023. , p. 65
Keywords [en]
FDI screening, M&A, Sweden, Regulation (EU) 2019/452
National Category
Law
Identifiers
URN: urn:nbn:se:uu:diva-509380OAI: oai:DiVA.org:uu-509380DiVA, id: diva2:1789158
Educational program
Master's Programme in International and European Law and Business
Supervisors
Examiners
Available from: 2023-08-18 Created: 2023-08-18 Last updated: 2023-08-18Bibliographically approved

Open Access in DiVA

fulltext(1659 kB)641 downloads
File information
File name FULLTEXT01.pdfFile size 1659 kBChecksum SHA-512
1ce406077ca81c27f5a0b1b70bcbaf8be03a730a9dc6065051bc67f9842792d1d4384373ac8a3435da9f494f630c82b4fffe62ef25fbe6cfa8195b62609aaa91
Type fulltextMimetype application/pdf

By organisation
Department of Business Studies
Law

Search outside of DiVA

GoogleGoogle Scholar
Total: 648 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 592 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf