European attempts to woo China could founder. “You see a clear pull-back in the desire of China to invest overseas,” Tim Gee, global head of mergers and acquisitions at Baker McKenzie told CNBC Wednesday. He attributed this to China’s intention to “exert some control over foreign exchange flows,” adding that future spending could focus on “real economy investments rather than hotels, resorts, entertainment (and) football clubs.”
“I wouldn’t overplay One Belt, One Road at the moment in terms of foreign direct investment,” Gee added, saying that the construction and infrastructure contracts the plan is currently known for “(don’t) translate into permanent capital investment into those countries.”
“I think there are still opportunities for investment of that sort (one-off contracts) in advanced economies which can support the development of construction in One Belt, One Road countries,” Gee said.
