Chinese FDI in Greece and the future about Sino-Greece relations

Abstract

In the context of globalization and economic integration, China has gradually transformed from a capital-importing country to a significant capital-exporting country. With its growing economic strength, China's global investment activities have become increasingly active, particularly with the advancement of the Belt and Road Initiative, leading to a steady increase in investments in European markets. In this process, Greece, with its unique geographical location and economic environment, has become a key destination for Chinese investments in Europe. Furthermore, the acceleration of globalization and the complexity of geopolitical dynamics have intensified the impact of China's overseas investments on the global economic landscape. This paper first analyzes relevant investment theories, such as Dunning's OLI Paradigm, internalization theory, and locational advantages, to better explain the investment behaviors between the two countries. Then, through the analysis of multiple data sources, it examines Greece's trade situation, the driving factors and characteristics of China's investments in Greece, as well as the responses from both governments. The paper also forecasts the future development trends of China's foreign trade and investments in Greece and the EU, exploring potential opportunities and challenges, while providing insights for policymakers.