Table of Content


Executive Summary
Chinese firms buying assets overseas in bid for greater global commercial influence
Chinese overseas infrastructure investments expand global influence
Chinese defense industry and military goals tie in with the country’s broader ambitions
China tech firms are innovating rapidly but face big problems on international stage
Chinese firms buying assets overseas in bid for greater global commercial influence
Chinese expansion into Portugal signals wider intentions on exerting influence around the world
Expect minority shareholdings as China scouts out future options
Activity in Germany is indicative of wider Chinese global ambitions and problems
European governments are now acting to stem influence of China on critical economic sectors
China will continue to seek big-budget takeovers of European companies
Chinese overseas infrastructure investments expands global influence
Belt and Road Initiative is propelling Chinese power around the world
Purchasing of European ports represents big extension of Chinese influence
Infrastructure Investment into Africa translates into rising Chinese influence, overtaking the United States
Chinese companies and government stand to gain heavily from current arrangements in Africa
Exporting of Chinese power generation infrastructure helps to expand global influence
Chinese defense industry and military goals tie in with the country’s broader ambitions
China has significant long-term goals for the PLA
In many ways China’s future plans for the PLA are cautious considering what impressive progress has already been made
China already has a top tier military when taking into account budget, financial health and manpower
By 2030 only the US will have similar or better capabilities than China
China wants significant military power to feed into its wider political and economic goals
Chinese defense firms are now unofficially in the global top ten
The majority of Chinese arms stay in China, but growing amounts exported within Asia and Africa
Building the hardware is less of a challenge for China, but training troops for it is
China is gathering military knowledge, as it is in other industries
China buys military equipment from Russia, but Russia has been displeased with China’s apparent copying
Copying foreign designs by any means necessary is not sensible for multiple reasons
China has still not developed its own military doctrine and appropriate equipment
“Freedom of Navigation” operations are evidence of a significant push back on China’s defense policies
China Djibouti base is an attempt to replicate western idea of military power
China tech firms are innovating rapidly but face big problems on international stage
Silicon Valley is increasingly copying China, evidencing innovation of new Chinese players
Chinese technology is going global, and the pace of expansion is likely to speed up
Intellectual property problems have harmed Chinese global expansion
Chinese technology companies face major threats in US trade war
Key Findings
Appendix
Sources
Further Reading
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List of Figures


Figure 1: Chinese strategies to achieve status of most important nation by 2050
Figure 2: Net profit (EURm) Energias de Portugal 2011-2017
Figure 3: Moray Firth development area
Figure 4: Value ($bn) of Chinese investment by sector in Europe 2008 to 2018
Figure 5: German exports to China ($bn) 2008 to 2017
Figure 6: Czech Republic President Milo? Zeman
Figure 7: Belt and Road Initiative Map
Figure 8: Chinese global export value 2008 to 2017 ($tn)
Figure 9: COSCO Shipping Ports Ltd revenue ($m) 2012 to 2017
Figure 10: Scale of Chinese money flowing into Africa
Figure 11: Chinese export value to Africa 2008 to 2017 ($bn)
Figure 12: President Xi’s 2017 goals for the PLA’s future improvement pathway 2020-2050
Figure 13: Personnel numbers in five main military branches of the PLA 2018
Figure 14: Global Firepower’s 2018 rankings of military strength
Figure 15: Top five global military budgets 2018 $bn
Figure 16: Significant Chinese naval hardware in 2019 and 2030 estimated
Figure 17: Chinese defense exports to Asia by country 2017
Figure 18: Top 15 global defense firms, defense revenues, with Chinese firms’ revenues estimated $bn 2017
Figure 19: Chinese imports of Russian aircraft and engines 1987-2016
Figure 20: Timeline of significant Chinese PLA engagements 1950-2019
Figure 21: Comparison of China, UK and US new generation aircraft carriers 2019
Figure 22: Significant cyber incidents, attacks on governments, defense and high-tech companies 2006-2019
Figure 23: Timeline of the Huawei scandal 2012-2019
Figure 24: Russia’s SU-33 (left) and China’s J-15 (right) comparison
Figure 25: Tencent revenues (RMBbn) 2009 to 2017
Figure 26: Number of Chinese smartphones (million) in circulation 2012 to 2017
Figure 27: Top 20 Leading tech companies by value December 2018 (Chinese companies highlighted in red)
Figure 28: Fujian Jinhua Integrated Circuit Company (JHICC)


List of Tables


Table 1: Nuclear power plants under construction in China due for completion between 2018 and 2020
Table 2: Origination of global counterfeit goods by country, 2013