Infrastructure Invasion

Looking at the current state of Chinese companies’ investments in European infrastructure, they are proceeding in line with nationally driven policies such as the Belt and Road Initiative and Made in China 2025 strategy. These policies aim to expand economic and political influence beyond mere investment, and you can see how the strategy is being implemented through specific investment sectors and cases.

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Strategic Background and Policy Context

ㆍBelt and Road Initiative
Focuses on reshaping the global supply chain and expanding economic influence by establishing a logistics network connecting Europe and Asia. Increasing investment in strategic hubs such as ports and railways reflects China’s intention to take the lead in logistics flows (Source: 310).

ㆍMade in China 2025 Strategy
Overseas infrastructure investment is essential for strengthening advanced manufacturing competitiveness and securing technology standards. Through the construction of ports and transportation infrastructure, Chinese companies aim to secure technological superiority and market dominance (Source: 311).

In 2025, the Chinese government announced plans to maintain the fiscal deficit within 7.4% of GDP and continue expanding infrastructure investment, and this government support plays a significant role in entering the European market (Source: 11).

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2. Analysis of Major Investment Sectors and Cases

(1) Port Investment
ㆍCOSCO Shipping is representative. The case of investing in and holding more than 67% of the shares in the Port of Piraeus in Greece reveals a strategy to reorganize it as a European-Asian logistics hub. It is noteworthy that advanced automation technology is being introduced to increase cargo throughput in the Port of Rotterdam in the Netherlands and the Port of Valencia in Spain (Source: 1012).
ㆍChina Merchants Group is investing 400 million euros in the Port of Dunkirk in France to expand the container terminal and is also deploying a cargo distribution strategy in the Port of Trieste in Italy (Source: 12).

(2) Railway and Inland Logistics
The China-Europe Railway Express, i.e., China-Europe railway cargo, forms an active trade network, operating more than 50,000 times a year as of 2025. In particular, the Port of Duisburg in Germany has become a key hub handling more than 30% of Chinese cargo. CCCC (China Communications Construction Company) is participating in the expansion of Eastern European railway routes, strengthening multinational logistics cooperation (Source: 1011).

(3) Warehousing and Digital Logistics
Looking at the case of Hutchison Ports, smart warehouses were built in Hamburg, Germany, and Warsaw, Poland, through the introduction of AI and IoT-based logistics management systems. It is noteworthy that efficiency has improved by more than 25% through real-time logistics data analysis (Source: 412).

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3. Academic Interpretation of Investment Motives

ㆍDunning’s OLI Paradigm

Ownership Advantages: Chinese companies are securing competitiveness in technology and economic scale with large-scale capital and government support (Source: 7).
Location Advantages: Europe’s advanced infrastructure and access to the EU single market are being used to increase investment attractiveness (Source: 710).
Internalization Advantages: A strategy of strengthening market dominance and diversifying risks through local mergers and acquisitions (M&A) is being adopted (Source: 7).

ㆍStrategic Asset Seeking Theory
The increase in joint ventures with German advanced robotics companies, etc., to secure technology and intellectual property rights (IP) is also analyzed as one of the motives for China’s overseas infrastructure investment (Source: 9).

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4. Europe’s Response and Conflict Factors

ㆍSecurity Risks
As Chinese companies operate European ports, the possibility of military use has been raised, and related international organizations such as NATO have issued warnings. The COSCO investment case in the Port of Piraeus in Greece is representative (Source: 12).

ㆍEconomic Dependency
Some Eastern European countries, such as Hungary and Serbia, are becoming increasingly dependent on Chinese capital, raising concerns about increased debt and financial pressure (Source: 11).

ㆍStrengthening EU Regulations
As of January 2025, the Foreign Investment Screening Enhancement Act has been implemented, making security threat assessments mandatory. More than 30 cases have been rejected in strategic industry investments such as energy and telecommunications (Source: 12).

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5. Future Prospects and Implications

ㆍReshaping the Logistics Network
With the deepening of the US-China trade conflict, Chinese companies’ nearshoring investment in Europe is expected to increase. The strengthening of cooperation among RCEP signatory countries supports the emergence of Central and Eastern Europe as a new production base (Source: 412).

ㆍSecuring Technological Competitiveness
The movement of China’s 5G and AI technologies being combined with European infrastructure is active, but friction with the EU’s GDPR and cyber security regulations is expected, and competition for technology standards is expected to intensify (Source: 9).

ㆍSustainability Pressure
Due to the implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM), Chinese companies are also expanding investment in eco-friendly infrastructure. For example, CCCC is investing 200 million euros in a solar power plant construction project in Spain to strengthen ESG management (Source: 11).

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Summary

The background to Chinese companies’ investments in European infrastructure is a coexistence of economic benefits and the expansion of geopolitical influence. With the support of national policies such as the Belt and Road Initiative and Made in China 2025, large-scale investments are being made in various fields such as ports, railways, and warehouses, but security and economic dependence issues within Europe, and a strengthening regulatory environment are complicating the investment environment. These investment patterns can be explained through Dunning’s OLI paradigm and the Strategic Asset Seeking Theory, and competition for technology standards and sustainability are expected to emerge as major issues in the future.

References:

COSCO Shipping and port investment cases (Source: 1012, 12)
Contents related to railway and logistics investment (Source: 1011, 412)
Government financial and policy-related announcements (Source: 11, 310, 311)
Cases applying academic theory (Source: 7, 9, 710)

As such, China’s investment in European infrastructure goes beyond simple overseas expansion and encompasses a complex strategy covering technology, logistics, security, and environmental sustainability.

Chinese companies have been actively investing in European infrastructure in recent years, with investments expanding across various sectors such as ports, warehouses, and transportation. Below is a summary of which companies are investing in which areas.

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Port Sector Investment

① COSCO Shipping Lines
• COSCO’s acquisition of a stake in the Port of Piraeus in Greece is a prime example of expanding its influence in Europe.
• The Port of Piraeus is an important maritime logistics hub connecting China and Europe, and COSCO’s investment, in line with the ‘Belt and Road’ initiative, is driving the modernization of European port logistics.
• Related Article: Reuters’ (2021) report details COSCO’s investment moves in Piraeus.

② China Merchants Port
• China Merchants Group, known to be affiliated with China Ocean Shipping Company, is making strategic investments in several European ports.
• In particular, attention is focused on major ports such as Trieste in Italy, and the intention to expand China’s logistics network can be seen.
• Reference: Trends in China Merchants Group’s European investments can be found in the Financial Times (2020) and related industry reports.

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2. Warehouse and Logistics Center Investment

① Sinotrans (China National Foreign Trade Transportation)
• Sinotrans is strengthening its investment and operational capabilities in logistics centers and warehouse facilities throughout Europe, aiming to build a global logistics hub.
• At the same time, investments in smart logistics systems and digital transformation are noticeable, with the aim of maximizing operational efficiency.

② Cainiao (Alibaba’s logistics subsidiary)
• With the growth of e-commerce, Cainiao is accelerating the establishment of warehouses and distribution centers to expand its logistics network in Europe.
• In particular, it is actively promoting localization strategies to optimize online shopping growth and supply chains, and its efforts to build a fast delivery system stand out.

More specific investment status and plans can be found in related industry analysis reports and Alibaba-related materials (e.g., Alibaba Investor Relations reports).

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3. Transportation and Other Infrastructure Investment

① China Railway Group & CRRC Corporation
• In the field of railway and transportation infrastructure, China Railway Group is investing in railway projects in Europe and participating in improving existing roads and railway networks.
• CRRC Corporation is also increasingly contributing to the modernization of transportation systems in Europe through the export of railway vehicles and related technologies.
• The participation status of Chinese companies can be found in infrastructure investment plan reports by the European Union (EU) and individual countries (e.g., EU Transport White Paper).

② Cooperation between comprehensive logistics and transportation companies
• Some Chinese investors are cooperating with local logistics companies to focus not only on simple infrastructure investment, but also on the introduction of smart logistics management systems and digital transformation strategies.
• These moves focus not only on short-term facility investment, but also on strengthening long-term competitiveness through logistics network and technological innovation.

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As such, the investment strategies of Chinese companies are not limited to simple facility acquisitions, but are focused on securing long-term competitiveness through overall logistics network and digital technology adoption. It will be helpful to continuously check related latest data and reflect it in your headquarters strategy.

1. The Role and Importance of Customs

Customs play a crucial role in international trade and humanitarian aid.

1.1 Key Functions of Customs

The role of customs can be divided into three main functions:

Revenue Collection: Appropriately collecting taxes when products enter a country.
Trade Facilitation: Supporting legitimate and legal trade activities to facilitate rapid distribution.
Security & Risk Management: Monitoring smuggling and illegal goods, and controlling risks through borders.

1.2 Customs and Humanitarian Aid

In the event of humanitarian crises, customs play a critical role in determining the rapid entry of medicines, medical equipment, and recovery equipment. To this end, customs cooperate with health authorities to review the quality and distribution routes of vaccines, medical equipment, etc.

2. The Role of Technology and Data

Technology plays an important role in increasing the efficiency of customs operations.

2.1 Use of Digital Solutions

Non-intrusive Inspection: Customs officers can quickly review containers using technologies such as X-rays and scanners without opening them.
WCO Data Model: Applying internationally standardized data formats to facilitate information exchange between countries.
Electronic Declaration: Simplifying customs procedures by allowing traders to declare goods electronically.

Activation of information sharing systems between countries (e.g., the World Customs Organization’s ‘Globally Networked Customs’ system)
Forming cooperative relationships between traders and customs
Establishing a rapid data exchange environment while maintaining personal data protection, security, and reliability.

3. Finland’s and Global Trade Approaches

Finland is a trade-dependent country, and maintaining international supply chains is essential in times of crisis.

3.1 Supply Chain Security & Infrastructure Investment

Cooperation with the European Union (EU) and NATO: Facilitating trade between member states and maintaining supply chain stability.
Strengthening Digital Infrastructure: Finnish companies (e.g., Nokia) contribute to restoring Ukraine’s communication and energy infrastructure.
Risk Management: Protecting global supply chains through joint analysis and response by the public and private sectors.

3.2 Public-Private Cooperation Model

Information Sharing between Companies and Government: Companies provide practical data on supply chains, and the government analyzes diverse risk factors to establish policies.
Conclusion of Trade Agreements with Various Countries: Reducing trade dependence on specific countries and diversifying risks.
Logistics Innovation: Finland optimizes trade by upgrading port, rail, and road logistics systems.

4. Ways to Promote SME Participation in Trade

The biggest obstacles for small and medium-sized enterprises (SMEs) to participate in global trade are complex regulations and high costs. Several strategies are needed to address this.

4.1 Trade Support Policies for SMEs

Support for Trade Preparation: Providing education and guidance to help companies easily understand export/import procedures and customs regulations.
Utilization of the AEO (Authorized Economic Operator) Program: Reducing costs and time by streamlining customs procedures for trusted companies.
Providing Transparent Regulations: Supporting companies by clearly disclosing complex trade processes so they can prepare.

4.2 Market Diversification Strategies

Opening up various trade markets to reduce dependence on specific countries.
Seeking indirect trade strategies that utilize global supply chains, as well as direct exports.

5. Future Trade Environment and Key Challenges

The international trade environment is rapidly changing, and continuous technological development and policy adjustments are necessary.

Lack of data standardization between countries → Introduction of the WCO Data Model is needed.
Information protection and security issues → Establishing a trust-based data sharing system.
Inefficiency of administrative procedures → Establishing a rapid response system using digital trade platforms and AI.

5.2 Trade Risk Management and Response Strategies

Strengthening cooperation between countries to prevent major supply chains from being disrupted in the event of natural disasters, pandemics, and geopolitical crises.
Actively utilizing new trade agreements to promote trade diversification.
Building a smart logistics system through public-private cooperation.

Conclusion: Efforts to Build a Sustainable Trade Environment

Digitization and Increased Efficiency of Customs
- Utilizing technology for rapid logistics processing and blocking risk factors.
Expanding Public-Private Cooperation
- Strengthening information sharing and preparing for trade risks jointly by the government and companies.
Expanding Trade Participation Opportunities for SMEs

Transparency of regulations and simplification of trade procedures.

Strengthening Global Cooperation for Crisis Response
- Building an international trade system to prepare for risks such as geopolitical threats, climate change, and pandemics.

As the international trade environment continues to change, it is important to build a sustainable and flexible trade system through technological innovation and strategic cooperation.

*Source: [World Economic Forum]

– Trade Tech: Delivering for People | World Economic Forum Annual Meeting 2025