The European Commission is poised to follow through on its plans to make it harder for China to buy up European companies in key technologies. In his State of the Union message Wednesday, Commission President Jean-Claude Juncker will unveil measures to allow European Union member states greater latitude in blocking acquisitions and provide a mechanism for the commission and other member states to weigh in.
The EU will remain open to foreign investment, according to the legislative proposal made available to Handelsblatt, but it is valid “to protect critical European assets from investments that run contrary to the interests of the Union and its member states.”
Germany, France and Italy have been among the member states pushing for more protection under EU law, but not everyone is happy about the commission’s plans. Some smaller members – such as Netherlands and the Scandinavian countries – worry that the new restrictions could become barriers to a valued source of investment in their countries.