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China's investment in UK will be 'explosive' (3)

By  Ding Qingfen  (China Daily)

08:32, January 04, 2013

GDP growth in the UK in the third quarter was the strongest since the third quarter of 2007. But the Bank of England has said the fourth quarter is likely to see a contraction.

The UK suffered its second recession since the financial crisis between late 2011 and mid-2012.

Economists predict that a pickup in the economy is not likely in the immediate future.

Since the financial crisis, China's ODI has been on the rise and Europe has become an increasingly hot destination.

Since the beginning of 2011, China has conducted 32 mergers and acquisitions throughout Europe, valued at about $15 billion. The deals were mainly in the high-tech fields.

But Chinese proposals and investment deals have been frequently hindered by restrictions in some European nations.

The EU said last year it has been collecting evidence for a potential anti-dumping or anti-subsidy case against Huawei Technologies Co Ltd and ZTE Corp, the world's leading makers of wireless telecom equipment. This follows a report in the US that the companies were a potential security risk. This allegation was categorically rejected by both companies.

"Fortunately, the policy and regulations here are transparent and well made. More importantly, there are no investment restrictions in the majority of sectors except for military projects and the media industry," said Zhou.

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