Today, China has become one of the major exporters of capital in Europe. It is expected that China's liberal policy and growth model will soon make China a major provider of cross-border investment. This process is expected to have significant impact on host European countries of Chinese investment. Europe needs to change its policies and position itself strategically to not only reap the benefits of this massive influx of Chinese investment but also minimize potential risks that European countries face due to their historical linkages with China for trade and investment. The objective of this chapter is to review Chinese FDI in Europe to identify its impact on Europe's economy and suggest some measures for European economies to optimize the benefits of Chinese FDI for their national competitiveness and economic growth.
