Chinese Investments in Italy: Facing Risks and Grasping Opportunities

Abstract:

This paper analyses foreign direct investment (FDI) activities of Chinese multinational enterprises (MNEs) in Italy. Chinese investments in Italy present features similar to those in other advanced countries, while also showing some country-specific features. Italy is considered an attractive destination for Chinese investors not only because of its large market and its strategic position as a gateway to the Mediterranean, but also because it is seen as a valuable source of strategic assets in both traditional and advanced industries.

The analysis of the Italian case is supported by the presentation of a number of detailed case studies, which exemplify the strategies followed by Chinese companies in the country and help summarise the main implications of this phenomenon. Evidence presented in this paper gives rise to a number of suggestions for policy makers on how to maximise the benefits from rising flows of FDI from China and other emerging economies.