Screening FDI in the EU: A Cornerstone of an Economic Security Agenda

Abstract

Between 2017 and 2021 the European Union has transformed Chinese FDI from an economic means into a security threat. Yet very few scholars interrogated how the nexus between Chinese FDI, and security emerged in Europe. This chapter seeks to answer the question of how have actors and stakeholders transformed Chinese FDI from a purely economic matter into a security issue. The working hypothesis argues that if views of Chinese FDI as a threat emerge, then they induce the transformation of FDI from an economic to a security issue, and the evolution of the debate and policymaking in the EU confirms the hypothesis. The chapter demonstrates that security considerations related to traditional security were not the only reasons driving the process, economic considerations too played a central role in the securitisation process. Therefore, this chapters’ contribution is foremost empirical. Empirically, firstly, it sheds light on the dynamics of the process that led Chinese FDI to becoming a security issue in Europe and clarifies the drivers of such a shift as not exclusively related to traditional security but also to economic considerations. Secondly, it reveals a trend of increasing interconnection between security and economy in Europe.