Are there any potential security challenges in relation to Chinese foreign direct investment in Malta?

Abstract

Malta and China are characterized by significant differences, particularly in relation to their style of government, manpower, resources, their asymmetry in size and economic might, yet their bi-lateral and economic relations are often presented as mutually positive and beneficial. Whilst previous studies around foreign direct investment in Malta have been primarily carried out through a financial perspective, recent developments in the International political economy have raised the need to look at foreign direct investment from other points of view, which take into account security, within the broader International context, in which power, relations and interests are anarchically interwoven. As a result, this research is primarily concerned with addressing the question whether ‘’Are There Any Potential Security Challenges In Relation To Chinese Foreign Direct Investment In Malta? '’. In this study, the author utilized a number of theories, frameworks, and the European Union's foreign direct investment screening mechanism as tools to analyse the gathered data on Chinese foreign direct investment in Malta, in order to find out whether there are the conditions in place for a potential security challenge to be identified; and if so, what would it look like ? The data gathered was systematically processed and presented; Firstly, the researcher explored EU – Malta – China relations, presenting a well rounded picture of the diplomatic and economic activity occurring within this dynamic. The researcher utilized regulation 2019/452’s criteria, as a tool to identify which Chinese investments in Malta would be flagged by the EU’s FDI screening mechanism. The qualified investments were thoroughly analysed; the infrastructure involved, the sector, ownership structure, as well as other relevant data, were all included in the analysis, on an ad hoc basis. Finally, the research reveals a number of noteworthy observations, both on Chinese FDI in Malta, as well as other less discussed security concerns.