11.7 C
September 24, 2021

China to invest billion euros in Romania

The Chinese are about to invest some billion euros in Eastern Europe. The advance is mainly commercially motivated, but its economic support could be a blessing for weakened economies in the region, Realitatea.net informs, quoting Financial Times. But if the European Union does not get its house in order, it risks losing political clout on its own doorstep. Financial crisis has shifted China’s economic diplomacy into a higher gear, and Beijing has used Expo 2010 in Shanghai to showcase its expanding relations with new European partners. This month the Greek government announced a multibillion-dollar investment agreement through which the Chinese will construct new container terminals and airports and participate in shipbuilding. Several Chinese companies have signed up to a special economic zone in Sofia, while Bulgaria’s new centre-right government hopes to draw in more Chinese capital to compensate for dwindling western investments. Dozens of Chinese companies also attended a round-table with the Romanian government at the Expo this month to attract fresh investments – and not without result. The China Development Bank pledged generous support for developing Romania’s wind power. A leading contractor promised to build a new thermoelectric power plant, a project that might cost as much as EUR 1bln (£800m, USD 1.2bn). Other companies are exploring investment in the country’s agricultural and mining sector. China considers Eastern Europe an important economic bridgehead. Its ministry of commerce has established guidelines for new processing hubs to penetrate local markets, and thus circumvent possible EU trade restrictions.

Related posts

Hungary’s LAC and Romania’s Softronic plan joint engine production

Nine O' Clock

FinMin: EIB can play important role in facilitating SME access to funding

Nine O' Clock

Domestic branch of Air France-KLM posts over 6 pc increase in early 2011