中欧关系

China shock 2.0: Should Europe repel Chinese investment?

Brussels wants firms opening factories in the EU to transfer knowledge and employ local staff. Will it work?

The Bosch factory in Navarra in northern Spain once hummed with the same energy as the dishwashers it used to churn out. Today it stands idle. The German appliances company shut the plant last year because it was bleeding market share to lower-cost factories in China. Graffiti points to the anger at more than 600 lost jobs: “Worker fired, hang the boss”.

But new hope for the site outside Pamplona has emerged from an ironic source: China.

Spain has been at the forefront of attempts to attract Chinese investment to Europe. Prime Minister Pedro Sánchez met President Xi Jinping in China for the fourth time in just over three years on Tuesday. He has already got a decent return on his efforts. The latest boost came in March when Hithium, one of China’s biggest battery makers, said it would open a €400mn factory in Navarra. The old Bosch site is on its shortlist of locations.

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