Well-known Chinese news site Sina reported (June 6) that the European Union is considering further tightening up foreign investment policies. It is aiming at the Chinese government’s subsidies to Chinese companies’ international acquisitions. The EU is preparing investigations into the conduct of Chinese investors. This new plan is supplemental to the EU’s foreign investment review mechanism passed in April. Another important driver behind this new action is to address the wary when some EU companies become the target of acquisitions in the current coronavirus environment. The European Commission has informed the member countries about this intent to establish a new legal tool, designed to ensure a fair competitive environment. The EU April Foreign Investment Review Policy already allowed member country governments to step into foreign acquisitions on strategic assets. The new rule will focus on subsidies.

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