EU to mandate technology transfer in rule change targeting expanding Chinese firms
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The European Union is preparing rules that would make businesses from China share their technical knowledge with European firms as a condition for doing business in the region, marking a major shift in how the bloc handles foreign investment. The upcoming regulations, set to be announced in November, would target companies wanting to enter important markets such as automobiles and battery manufacturing. Under the proposed system, these businesses would need to meet several requirements. They must use a certain amount of products or workers from EU countries, and they must create real value inside European borders. Officials are also looking at making joint business partnerships mandatory. While the rules would technically cover all companies from outside the EU, people with knowledge of the plans told Bloomberg that the real aim is to stop China’s massive manufacturing power from crushing European industry. EU welcomes foreign investment if demands are met EU Trade Commissioner Maros Sefcovic stated on Tuesday, following discussions with trade ministers in Horsens, Denmark, that the European Union is open to foreign direct investment, provided it represents genuine investment. According to Sefcovic, this requires that foreign investors establish employment opportunities within Europe, contribute economic value to the European market, and share technological expertise with Europe, similar to the approach European businesses have taken when making investments in China. Chinese products that receive government money have flooded EU markets, and Beijing is now threatening to limit exports of rare earth minerals that European manufacturers need. But copying China’s protective trade practices could damage an important economic relationship and trigger retaliation. European Commission spokesperson Thomas Regnier indicated that various potential actions are under review aimed at supporting a robust, competitive, and environmentally sustainable European industrial sector. He emphasized that no conclusive determinations have yet been reached concerning the specific parameters and form…
Filed under: News - @ October 15, 2025 2:28 pm