The opportunities for EU in investment environment

In recent years, the EU as a whole has provided foreign investors with a relatively loose investment environment. It is under this environment that has promoted the rapid development of China’s total direct investment in the EU since 2007. It is believed that attracting more foreign investors will help the healthy development of the economy. On the one hand, appropriate competition from outside will promote local enterprises to raise their own awareness, and it also means to improve their own production efficiency. This kind of healthy competition is more effective. Promote the development of the market economy. On the other hand, after the European debt crisis, many EU countries also need foreign investment to increase economic vitality and accelerate the rapid economic recovery.

In recent years, the European Union, with its economic recovery, has provided a relatively sound investment environment for many foreign investors, while also offering other

unparalleled advantages. First, the EU is a very ideal investment environment for investors, the EU has many unparalleled advantages, a sound market environment, transparent legal system and high-quality personnel and other factors to attract more countries choose to invest in this;

second, Europe to Chinese investors to provide a relatively relaxed access to the environment, the relatively open market means less barriers to entry to the various countries of the EU almost without national security to keep Chinese investors out, Chinese companies are less hampered by the overall relaxed environment in the EU. The following section will look at the overall EU investment environment from three perspectives: economic, political and market access.

4.1.1 Economic environment

Nearly a decade has passed since the onset of the Eurozone debt crisis, and with the global economy picking up, the global economy is likely to see a new round of the Juggernaut economic cycle, with an overall trend of sustained growth. Europe is the world's largest economy, and with the EU's continued liberalized financial environment and strengthening economic recovery, the Eurozone economy has been an outstanding performer. Especially in the year 2017, the EU economy has entered a new phase of development. According to data

from the European Statistical Office, the EU and the eurozone's GDP rose 0.6% in the third quarter of 2017 and 2.5% year-on-year, the EU has maintained 18 quarters of sustained economic growth, the EU's economy as a whole showed a good momentum of recovery, in recent years, the EU countries continue to stimulate economic development, the European Central Bank continues to introduce quantitative easing Policies, a lower euro exchange rate and low oil prices could stimulate external economic welfare to boost the recovery, and as the economic environment improves, the outlook for consumer demand in the euro area is bright, with the EU's consumer confidence index having risen from -4.3 at the start of 2017 to -0.6 at the end of the year, and the euro area's consumer confidence index having risen from -4.9 at the start of the year to 0.5 in the face of the the consumer market is growing in all regions of the EU, and Chinese investors are also very interested in this vast market, preferring the EU countries. In terms of major domestic countries, 2017 was the first year in this decade that all EU countries achieved economic growth. The main EU countries grew at a solid pace, with strong momentum in the periphery. In terms of international trade, all euro area countries, except Cyprus, achieved growth in both imports and exports. In terms of trade liberalization, the EU has been more open than other countries, mainly due to low tariffs and also preferential tariff trade agreements with many countries. China, as the number one source of imports for EU countries, plays a very important role in the EU's external trade. With regard to labor, the reform of labor market integration has facilitated labor mobility and reduced labor costs and increased labor productivity.

4.1.2 Political environment

The political system of the EU is peculiar to the EU countries as the EU integration progresses. It is a form of intermediary between international organizations and states. In recent years, the EU has faced numerous challenges in advancing its political integration. Anti-European

integration, the rise of populism and the development of Brexit and other events have also had a significant impact on the politics of Europe, this impact will also have an impact on China's direct investment in the EU, so China's direct investment in the EU process needs to pay attention to the politics of the investment country and other related systems, in order to be more conducive to making investment decisions. The political system of the EU has its own

characteristics. From the source of power, EU member states are the main body of power, and the governments of EU member states have the role of supervision and restriction on the definition of treaties, that is to say, the European Council has the power to make EU laws and political policies, but the governments of EU countries still have veto power on decisions

involving their own interests. In terms of jurisdiction, the EU has a supranational character, with jurisdictional aspects already covering economic, judicial and internal market areas. In the case of regulatory jurisdiction over foreign investors, for example, the EU has a decisive influence and role. The existing legal provisions stipulate that, in accordance with the rules on freedom of commercial presence, the EU requires enterprises already established in each Member State to be subject to no more burdens and restrictions than those normally imposed on enterprises in the host country. According to the above, the China-EU direct investment relationship is deeply influenced by the EU's attitude and policy towards direct investment in Europe. In terms of organization, the EU adopts the separation of powers and checks and balances among the legislative, judicial and executive branches. Politically and institutionally, the EU has five main institutions: in the European Council is the highest decision-making body, the Council is responsible for day-to-day decision-making, the European Commission is the permanent executive body, the European Parliament is the supervisory and advisory body, and the European Court of Justice is the highest court. The lack of clarity in the EU decision-making process may reduce the efficiency of the administration. The quality of the political system in EU countries also affects outward investment decisions, and a high-quality political system reduces transaction costs and has a positive impact on cross-border direct investment.

4.1.3 Science and Technology Environment

The relatively high level of science and technology within the EU is concentrated in a few established developed countries, such as Germany, the UK and France. However, some Eastern European countries are lagging behind other developed countries in science and technology due to their low innovation capacity and slow economic development, resulting in a lack of human resources in science and technology. An important indication of whether a country attaches importance to the development of science and technology is whether it attaches importance to the cultivation of talents and strengthens the training of undergraduates, so that

young people become the reserve army of scientific and technological talents. In the current situation, some post-developed EU countries such as Spain, Portugal and Austria have already ranked at the forefront of the EU in terms of the proportion of undergraduates in their

workforce. At the same time, the number of patent applications in a country also largely represents the country's scientific and technological innovation capacity, and the higher the number of patent applications, the more active a country's scientific and technological innovation capacity can be reflected. From the data in recent years, Germany, the United Kingdom and France and other developed countries still have a large amount of patent

applications, individual Eastern European countries such as Poland also ranked in the forefront of patent applications, which also reflects the future scientific and technological development potential of some Eastern European countries. In general, the EU belongs to the second echelon of high-end manufacturing, the old developed countries have advanced technology and human resources, but the internal gap is large, more uneven development.