News World EU considers broadening scrutiny of foreign investments

EU considers broadening scrutiny of foreign investments

The European Union’s executive has proposed broadening scrutiny of foreign investments in the bloc, according to a public draft document, part of efforts to shield more sectors from potential Chinese buyers.

Oversight of some foreign investments in EU states will begin in October, and the European Commission has proposed widening the scope, via a legal act, to new projects on defence, satellite communications and nuclear energy.

The draft, which will be adopted if EU governments do not block it by June 15, marks the latest step in EU efforts to resist what Brussels sees as predatory, state-backed Chinese competition to dominate industries and absorb EU know-how.

EU governments are also frustrated that China has not followed up a formal offer last year to open up its economy.

An EU-China summit planned for September has been postponed, in part because of the COVID-19 pandemic but also because of EU frustration at a lack of progress on increasing European investment in China.

From Oct. 11, when foreign takeovers are announced, EU governments will be obliged to share details with the Commission in areas such as the media, transport and communications.

If expanded, the review would include more projects linked to defence, a new EU satellite communications programme and a multi-billion-euro nuclear fusion project.

Projects already on the list include transport, energy and Galileo, the EU satellite navigation programme.

“The Commission has found that there are several other projects and programmes…which are essential for security or public order and which should therefore also be included,” the draft regulation said.

Transferring technologies to a non-EU country is seen as a risk to the bloc’s strategic interests in some technology that Chinese state-led firms have sought to acquire.

However, some EU nations that promote greater free trade may object. Others which have benefited from Chinese investment at home may also oppose the step.

(Reuters)

Top Stories

Anassa Hotel suspends operation due to coronavirus-infected staff

Exclusive Anassa Hotel in Akamas region, Paphos, on Thursday suspended operation due to an outbreak of 13 coronavirus cases among its staff, the management...

‘Active Citizens’ call for mass participation at anti-corruption protest

A fledgling group calling itself ‘Active Citizens’ are staging a protest march in Nicosia on Thursday evening to demand an end to an alarming...

Investors are optimistic about Cyprus’ attractiveness-EY survey

Investors are optimistic about Cyprus’ attractiveness over the coming years but state that there is room for improvement, according to the EY Attractiveness Survey...

Turkish lira barely moving, inflation spiking

Turkey's lira was barely moving on Thursday ahead of an expected interest rate increase by the central bank, according to Reuters. The Turkish central bank...

Larnaca man beaten up, robbed and fired at in Nicosia

Police have said a 28-year-old man from Larnaca on Wednesday evening was beaten up in Nicosia by strangers who also stole his mobile phone...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...