Abstract This study examines the significance of information technological development in China's outward foreign direct investment (OFDI) to the EU, focusing on differences between Western and Central-Eastern Europe. Using static and dynamic panel data analyses from 2007 to 2022, it investigates regional disparities and the role of human capital. Key findings indicate that China's OFDI in the EU is significantly influenced by digital economy factors such as network coverage, digital talent, and digital product exports, with regional variations: Western Europe attracts investment for its digital talent, while Central-Eastern Europe attracts it for digital products and services. The study highlights that information technological development in EU countries significantly influences Chinese OFDI, suggesting that Chinese digital firms should closely monitor EU digital policies and choose investment locations based on each country's digital development. Both China and the EU have policies to boost the digital economy and should enhance cooperation. This study contributes quantitative evidence to previous qualitative research, introducing information technological development as a variable and linking it with traditional investment motives. It also explores the mediating role of human capital in the impact of information technological development on China's EU investment.
Tóth et al. (Fri,) studied this question.