Europe arming itself against Chinese investment, despite denials
European Union institutions agreed on Tuesday to terms of a planned mechanism to screen foreign direct investment within the bloc. The EU has said several times that the new framework is not aimed at countering China’s acquisition of high-tech European businesses, but its efforts actually seem to go in that direction.
It remains to be seen if debt-ridden EU countries such as Italy, Greece or Portugal, which are all keen to attract Chinese investment to spur economic growth and balance their books, will support the proposed vetting system. Relevant legislation must be adopted by EU member states with a qualified majority and approved by the European Parliament before it can enter into force.
