Sun. Jul 21st, 2019

China approves a new foreign investment law with winks at Trump and Europe | Economy

China approves a new foreign investment law with winks at Trump and Europe | Economy



LLUÍS PELLICER, Brussels

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The law comes to the door of a summit between the European Union and China that the heads of state and government want to start preparing next week. And just when the EU has decided to raise the tone against the Asian country to consider it, in a communication approved last Tuesday, as a "systemic rival" that has chosen to shield its markets.

The community executive did not want to speak on Friday about the new legislation until all the details are known. However, Europe's technology transfer to China is precisely one of the main concerns of the main economies of the continent. Germany, which has already vetoed acquisitions in sectors such as biotechnology, has been armed by law and may block purchases of more than 10% of the capital of certain companies.

The concern of Paris and Berlin has led the European Commission to acquire a mechanism that could control investments in sectors that could compromise the security of the continent. In addition, Brussels also studies mechanisms to avoid unfair competition that, in its opinion, supposes for the European corporations to have to fight with giants that receive large injections of public capital. But, far from declaring war, Brussels is now trying to find a common position among the Twenty-seven in order to reach an internal agreement on how to face this challenge and an external one to close trade pacts with China.

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