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China's Presence in Eu

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EU 2020 Strategy and Policies towards China’s Presence
To stimulate economic recovery, EU 2020 was schemed with three priorities namely smart, sustainable and inclusive growth. The targets include 75% employment rate of 20—64 year-olds, 3% of GDP invested in R&D, energy structural adaptation, a wider coverage of education, and poverty reduction.
Therefore, European Commission urged to pursue differentiated, growth-friendly fiscal consolidation, restore lending to the economy, promote growth and promote sustainable growth and competitiveness, tackle unemployment and social consequence, and modernize public administration.
However, the dilemma here is to balance fiscal spending while to invest more to R&D and labor market. Meanwhile, it’s difficult for EU to launch fiscal and financial reforms as a whole as problems confronting different countries are quite different.
In many studies into EU 2020, great importance is attached to institutional consolidation and country-to-country differentiations while not as much to the role of foreign policies despite increasing presence of other countries in EU.
China, as the second biggest trading partner of EU, has actively engaged in various corporations both with EU as a whole and with individual countries. China’s direct investment to EU reached 20 billion euro in 2011 covering all EU members. It will continue to increase as the Chinese authority is now revising its outbound investment law to encourage companies to go overseas and EU has always been an attractive market for Chinese investors.
Protectionism risks the chance to utilize investment from China as a supplement to insufficient market confidence and fiscal scrutiny. Laissez-faire seems to allow mass media to demonize Chinese investment and thus aggravate public panics. Therefore, policy incentives should be provided to guide Chinese investment to…...

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