Even the formal ownership structures of Chinese busi –
nesses lack transparency and are a blackbox to outsid-
ers. In addition there are a number of informal interre-
lationships between the state and the economy in China.
Hence even Chinese private businesses cannot be con-
sidered solely economic players who are exclusively pur-
suing economic motives. In this context it is difficult to
determine the actual extent of state influence on Chinese
FDI and the potential distortions of competition accom-
This provides a major challenge for future
dealings with Chinese FDI , which need to be discussed
carefully at both the German and the European level.