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Chinese investments in EU countries are experiencing a sharp decline for the second year in a row. The combined value of completed Chinese FDI transactions in the EU fell to EUR 17.3 billion in 2018, down 40 percent from 2017 levels (EUR 29.1 billion). This represents the lowest investment level since 2014.

According to a report that the German think tank The Mercator Institute for China Studies (MERICS) and the U.S. consulting firm Rhodium Group jointly published on March 6, after the peak of EUR 37.2 billion in 2016, Chinese investments in the EU dropped to EUR 29.1 billion in 2017 and dropped further down to EUR 17.3 billion in 2018.

“The lion’s share of Chinese investment in the EU’s 28 member countries continued to go to the three biggest economies in Europe—the UK (EUR 4.2 billion), Germany (EUR 2.1 billion) and France (EUR 1.6 billion)—which received 45 percent of China’s investments in Europe.”

Despite the decline in Europe, Chinese investment in Germany has risen. Compared with 2017, China’s investment in Germany in 2018 increased by EUR 400 million. This includes China Tiancheng Pharmacy Ltd.’s acquisition of German competitor Biotest, and Ningbo Jifeng Auto Parts’ purchase of German auto parts supplier Grammer.

An important reason for the overall decline in Chinese overseas M&A is that China has continued strict capital controls and tightened liquidity, making it difficult for companies to transfer funds abroad. That European countries have increasingly strict controls over acquisitions has also increased the difficulty for Chinese companies to complete acquisitions. European countries are expected to exert stricter controls over acquisitions.

However, in the near term, the recent expansion of the US investment screening regime and the continued US–China tensions, may also boost Chinese investment in Europe.

Source: Radio France International, March 6, 2019
http://rfi.my/3kdC.T

On the evening of February 25th, at Warner Theatre in Washington DC, the American Troupe of “Festival of Spring” completed the final performance of its global tour. China National Opera & Dance Drama Theater, a subsidiary of the Chinese Ministry of Culture, put together the show of “Festival of Spring.” The presenters included the Overseas Chinese Affairs Office of the State Council and the All-China Federation of Returned Overseas Chinese. The former is also an office under the Chinese Communist Party’s United Front Work Department; the latter is a liaison organization between the CCP and the overseas Chinese community.

For the season of 2019, six troupes of the “Festival of Spring” program were reported to have travelled to 29 cities in 16 countries with 33 shows, including Medan (of Indonesia), Barcelona, New York, Nairobi, Suva (of Fiji), Philadelphia, and Washington D.C.

According to People’s Daily, since 2009, the program of “Festival of Spring” has toured overseas every year during Chinese New Year holiday season. So far, it has dispatched 75 arts groups and done 450 performances in 331 cities across five continents, with nearly 7 million theater or public square audience members.

Tang Cuiying, head of the American Troupe of “Festival of Spring” and a board member of the China Overseas Friendship Association, a CCP led United Front Work organization, stated, “The overseas performances are to bring the blessings and greetings from the homeland to the overseas Chinese, so that they can enjoy the melodies and love from the homeland in an atmosphere of reunion and happiness.” Tang is also an official at the Bureau of Overseas Chinese Affairs under the CCP’s United Front Work Department.

Source: People’s Daily, March 1, 2019
http://paper.people.com.cn/rmrb/html/2019-03/01/nw.D110000renmrb_20190301_2-20.htm

Canada’s Education Minister in the New Brunswick government, Dominic Cardy, told the Canadian Broadcasting Corporation (CBC), that he is planning to terminate the Confucius Institute in New Brunswick by June out of concern that teachers only teach what the Chinese Communist Party approves and the Institute presents a “one-dimensional” view of China. Cardy already sent the Confucius Institute a letter of intent to discontinue the program.

Cardy says he’s recently received five complaints from students who attended the Confucius Institute programs. Each told of topics in Chinese history that were off-limits to discussion, such as Taiwan’s recognition and Tibet. Cardy explained, “Their job is to create a friendly, cheerful, face for a government that is responsible for more deaths than nearly any other in the history of our species.”

New Brunswick is not the first case to remove the institute. In 2014 the Toronto District School Board voted to remove the institute from their schools following protests. McMaster University and the University of Manitoba have also removed the Confucius Institute from their campuses over freedom of education concerns.

Source: Radio Free Asia, February 27, 2019
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lf-02272019093950.html