This chapter analyzes the EU-China Foreign Direct Investment (FDI) relationship, through a double-sided perspective that considers the two partners in the mutual roles of ‘host’ and ‘home’ economies. Although many have traditionally identified China as a low-cost manufacturing location, the country has recently turned out to be an important home for multinational activity. Since internationalization of Chinese companies represents a very recent chapter in the country’s long history, this chapter first provides a brief historical overview to highlight the main steps along China open up path and clarify the role of government intervention in accelerating its global engagement. Based on recent data, the relative importance of China and the EU in the respective FDI outflows is then examined, so as to delineate the relevant trends, discuss the main findings and evaluate future perspectives.

In: The European Union and China