The Impact of Ukraine's Deracinement on the Management of China's Foreign Direct Investment (FDI) in the Central and Eastern European Countries (CEEC)

The Republic of Ukraine underwent a deracinement early in 2014 that became used as a pretext by the Russian Federation to redesign political boundaries felt to be settled since 1945 and 1994. This chain of events and the world's responses thereto seem to have startled the Chinese with an alarming realisation that China's huge Foreign Direct Investment (FDI) into Ukraine is at risk, much as the swiftly changing political architecture of the Ukraine's Crimean Peninsula has made China revisit its relations with the Russian Federation and the impact of those relations on security of China's own borders and the wisdom of China's traditional voting with Russia as a permanent member of the United Nations Security Council. Closely parallel are rising tensions in the Pacific rim with China's longtime archrival Japan, exacerbated by Japan's rapprochement with the Russian Federation recently, seemingly at the behest of India, China's other archrival in Asia, causing China to perceive it is being encircled from its volatile Northwestern to Northeastern boundaries. This paper will draw a nexus between Asia and Europe that appears to require China to conclude that its security in Asia is diminishing whilst dangers to its planned economic expansion into Europe are rising. The questions to be considered are whether such chain of events will draw China closer to its two huge trading partners, the European Union and the United States, and strategies to optimise this result.