Between a rock and a hard place: Portugal, China and the EU

China and the European Union have, for a long time, sustained a cooperative, yet at the same time, antagonistic relationship. The surge in Chinese FDI in Europe, after the global financial crisis, exacerbated unfavorable opinions of China, due to skepticism surrounding the intentions behind this investment increase. There is in place the belief that Chinese investment is negatively contributing to EU cohesiveness, by putting member states against each other to curry for China’s favour and secure investments, thus putting at risk the European order. The period post-2008 financial crisis saw Portugal becoming an important recipient of Chinese FDI, and as such, this paper analyzes the impact Chinese FDI has in Portuguese foreign policy and its integration in the EU. Portugal proves to be a unique case in comparison with other member states, due to its long-lasting relationship with China, and positive track record as a member of the EU. This dissertation examines this issue by using...Show moreChina and the European Union have, for a long time, sustained a cooperative, yet at the same time, antagonistic relationship. The surge in Chinese FDI in Europe, after the global financial crisis, exacerbated unfavorable opinions of China, due to skepticism surrounding the intentions behind this investment increase. There is in place the belief that Chinese investment is negatively contributing to EU cohesiveness, by putting member states against each other to curry for China’s favour and secure investments, thus putting at risk the European order. The period post-2008 financial crisis saw Portugal becoming an important recipient of Chinese FDI, and as such, this paper analyzes the impact Chinese FDI has in Portuguese foreign policy and its integration in the EU. Portugal proves to be a unique case in comparison with other member states, due to its long-lasting relationship with China, and positive track record as a member of the EU. This dissertation examines this issue by using liberal intergovernmentalism and motivations behind Chinese investment, to argue that Portugal’s domestic interests play an important role in how it handles both China and the EU, as well as to defend that Chinese investment in Portugal as shown to be economically motivated. The results suggest that Portugal maintains a consistent and unchanged, for the most part, China policy. Furthermore, since most of Portugal’s domestic interests are met by the EU, according to liberal intergovernmentalism, in this way, it continues to contribute to its integration in the union. All in all, Chinese FDI in Portugal shouldn’t pose as a concern to the EU, seeing as the data reveals that Portugal’s top investors continue to be fellow member states, with China comprising a modest and slowly decreasing percentage. Therefore, the novelty of Chinese FDI in Europe continues to perpetuate an exaggerated anxiety, along with often unnecessary concerns, regarding the impact of said investment in Portugal.Show less

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Between a rock and a hard place: Portugal, China and the EU