An open economy and rare political questions

As part of a joint effort to take stock of Chinese investment in Europe by major European think tanks, DIIS Senior Researcher Yang Jiang contributes with a Danish report arguing that the attitude of the Danish government has been an open embrace of economic opportunities with rare political questions. While Denmark has received very little Chinese investment in terms of total volume compared with others in Europe, it has nevertheless been a sought-after destination for Chinese investors hoping to benefit from the country’s strengths in renewable energy, health and welfare solutions, and information technology. Some proposed investments, in particular in the telecommunications sector and in Greenland’s mineral assets and former naval base, have raised red flags. General discussions about political conditions and human rights in China are common in the Danish parliament and media, but up to now these have rarely spilled over into the investment arena. Denmark has long considered its economic openness to be one of its greatest strengths and necessary for the small economy. In upholding openness, Copenhagen has argued in favour of granting Market Economy Status to China and has expressed reservations on the proposal to create a foreign investment screening mechanism at the EU level. (in Chinese Investment in Europe: A Country-Level Approach, A Report by the European Think-tank Network on China, edited by John Seaman, Mikko Huotari and Miguel Otero-Iglesias, December 2017)