The European Union is planning to tighten its foreign investment rules in order to protect itself from Chinese dominance.
Under the new guidelines, Chinese firms investing in the bloc would be forced to hire local workers and to transfer technology and know-how to domestic firms, a remarkable symbolic concession of how rapidly Chinese firms have overtaken European ones in certain sectors.
Brussels’ move comes as investment from the world’s second-largest economy soars in Europe: Foreign direct investment flows from China to the EU rose 80% in 2024 compared to the previous year, with CATL, the world’s biggest battery manufacturer, leading the charge. However, some experts question whether Brussels has the required unity among member states to drive through the changes.
