Tuesday, 02 January 2024 12:17 GMT

EU Planning New Conditions On Chinese Investments To Protect Strategic Sectors


(MENAFN- Khaama Press) The EU is considering new investment rules for Chinese firms, tightening technology transfers to protect strategic industries and align more closely with U.S. economic security policies.

The European Union is weighing new restrictions on Chinese investments, including limits on technology and knowledge transfers, as part of a broader effort to protect its strategic industries.

EU foreign ministers discussed the proposal during a meeting in Denmark, where concerns were raised about Beijing's growing influence and the risks of technology leakage from European firms.

Danish Foreign Minister Lars Rasmussen said many EU members now agree that Europe must adopt a“more assertive and protective approach” similar to those taken by the United States and China.

Brussels has repeatedly accused Beijing of forcing European companies to share advanced technologies in exchange for market access - a practice it says undermines the bloc's economic sovereignty.

Officials said any future framework would strengthen investment screening mechanisms and apply stricter scrutiny to sectors such as telecommunications, energy, and advanced manufacturing, while maintaining open trade where possible.

Analysts say the discussions mark a turning point in Europe's economic strategy toward China, shifting from dependence to“de-risking.” However, they caution that tighter restrictions could strain trade relations with one of the EU's largest economic partners.

The European Commission is expected to present concrete proposals later this year as part of its plan to bolster economic resilience and secure critical technologies against foreign control.

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