The Centre for Economic Strategy reported that China’s investment in Ukraine had increased from $50 million to $260 million over 2016-2021.
“The growth of investments from China should be closely followed because similar to those from Russia, such investments are often made by state-owned enterprises and pursue not only commercial but also political goals,” the Centre said.
In particular, according to analysts, China invests mainly in Ukrainian state-owned companies, primarily in energy and agriculture.
“On the one hand, there are prospects for strengthening such cooperation. But on the other hand, it will depend on political agreements and where they will be ‘let in.’ We have our own elites who control most of the economy and they do not want to see foreign competitors,” reads the study.
As a reminder, China is Ukraine’s largest trading partner. In 2020, Ukraine imported more than $8 billion worth of goods from the country, while exporting more than $7 billion. At the same time, there is a noticeable imbalance in our foreign trade as Ukraine buys mainly goods with a high share of added value (engineering products) from China and sells raw materials (ore, grain, metal).