Balancing Economic Security: The EU's Differential Screening of Chinese FDI in Green Energy and Agri-Food Technologies
Author
Gannerup, Annika Egesby
Term
4. semester
Education
Publication year
2025
Abstract
This thesis examines how and why the European Union (EU) treats Chinese foreign direct investment (FDI) differently in two strategically important sectors: green energy and agri-food technologies. It starts from the premise that FDI is not only an economic tool for innovation and growth, but also a political instrument that can affect national security and strategic autonomy. Using a neorealist framework and Stephen Walt’s Balance of Threat theory, the study analyzes how the EU as a quasi-state actor assesses threats from Chinese investments through factors such as aggregate capabilities, geographic proximity, offensive capabilities, and perceived intentions. This security perspective is combined with international political economy approaches, including Ashley Lenihan’s concept of non-military internal balancing, David Baldwin’s theory of economic statecraft, and Susan Strange’s notion of structural power and control over knowledge. Methodologically, the thesis employs a comparative qualitative design and case studies of two green energy technologies—solar photovoltaics (PV) and electric vehicles (EV)—alongside a central agri-food case, Syngenta and its investments in the EU. In the green energy sector, the analysis finds that technologies like PV and EV are closely linked to critical infrastructure, data systems, and national security, prompting stricter screening and regulatory balancing by the EU. In contrast, agri-food technologies are largely treated as commercial and low-risk, meaning they are not subject to comparable security-oriented scrutiny, even though growing Chinese investment in digital farming, biotechnology, and data systems may create new dependencies and vulnerabilities similar to those in the energy sector. The thesis concludes that the EU’s differential screening of Chinese FDI reflects divergent threat perceptions rather than clear differences in strategic relevance, and argues that the EU must strike a careful balance that safeguards strategic autonomy and economic security without undermining technological innovation or international cooperation.
Denne afhandling undersøger, hvordan og hvorfor Den Europæiske Union (EU) behandler kinesiske direkte investeringer forskelligt i to strategisk vigtige sektorer: grøn energi og agri-food-teknologier. Udgangspunktet er, at udenlandske direkte investeringer ikke kun er økonomiske redskaber til innovation og vækst, men også kan fungere som politiske instrumenter, der påvirker national sikkerhed og strategisk autonomi. Med afsæt i neorealisme og Stephen Walts Balance of Threat-teori analyseres, hvordan EU som kvasi-statlig aktør vurderer trusler fra kinesiske investeringer ud fra kapabiliteter, geografisk nærhed, offensive muligheder og opfattede intentioner. Analysen kombinerer dette sikkerhedsperspektiv med internationale politiske økonomi-tilgange, herunder Ashley Lenihans begreb om ikke-militær intern balancering, David Baldwins teori om økonomisk statskunst og Susan Stranges teori om strukturel magt og videnkontrol. Metodisk anvendes et komparativt kvalitativt design med caseanalyse af to grønne energiteknologier – solceler (PV) og elbiler (EV) – og én central agri-food-case, Syngenta og selskabets investeringer i EU. I grøn energi finder studiet, at teknologier som PV og EV kobles tæt til kritisk infrastruktur, datasystemer og national sikkerhed, hvilket udløser skærpede screeningsmekanismer og regulatorisk balancering. Agri-food-teknologier behandles derimod overvejende som kommercielle og lavrisiko, hvorfor lignende sikkerhedsorienteret screening stort set udebliver, selv om stigende kinesiske investeringer i digitalt landbrug, bioteknologi og datasystemer potentielt kan skabe nye afhængigheder og sårbarheder, der minder om dem i energisektoren. Afhandlingen konkluderer, at EU’s differentierede screening af kinesiske investeringer primært afspejler divergent trusselsopfattelse snarere end forskelle i teknologiernes strategiske betydning, og argumenterer for, at EU må finde en balance, der styrker strategisk autonomi og økonomisk sikkerhed uden at hæmme teknologisk innovation eller internationalt samarbejde.
[This abstract has been generated with the help of AI directly from the project full text]