EU-China relations: Brussels to push outbound investment screening tools in January, amid concern over Beijing
- Move aims to cover ‘the narrow set of technologies and know-how’ that could ‘undermine international peace and security’ if in the wrong hands
- EU also plans to update regulations on screening of inbound direct investment to prevent infrastructure assets from being bought by hostile forces
The EU will present an “initiative” on screening outbound investments in the new year, as part of a package of tools aimed at de-risking its trading ties with China.
The European Commission - the bloc’s secretariat - has been working with its member states and businesses on the economic security tools since June, trade chief Valdis Dombrovskis said in a speech to the European Parliament on Tuesday. The new package is expected in January.
“We have started examining potential security risks related to outbound investments,” the former Latvian prime minister said.
“The EU and member states have a common interest in preventing the narrow set of technologies and know-how to leak to actors that will use them to enhance their military and intelligence capabilities and to undermine international peace and security.”
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While Dombrovskis did not name China and the tools will be country-agnostic, they are broadly aimed at Beijing.