Connect with us

China

Brussels sends strong message with FDI vetting plan

European Commission outlined plans to implement more stringent vetting of overseas investment, specifically aimed at empowering EU governments to block takeovers from Chinese and other investors.

Avatar

Published

on

In a show of resolve, European Commission president Jean-Claude Juncker on September 13 outlined plans to implement more stringent vetting of overseas investment, specifically aimed at empowering EU governments to block takeovers from Chinese and other investors.

Set out in Mr Juncker’s State of the Union speech to the European Parliament, the draft EU screening framework is described as an effort to protect companies in industry sectors deemed sensitive, such as energy and advanced technology.

In an unprecedented move, the legislation includes an ‘anti-circumvention’ clause, which would allow individual governments to block acquisitions attempted by European shell companies, or those established by foreigners in the bloc – a power normally disallowed due to EU free movement of capital laws.

The added scrutiny comes in response to security concerns and criticism of unequal market access between the EU and China in particular: in 2016, China’s investment into the EU was quadruple that of EU countries into China.

A joint report by think tanks Rhodium and the Mercator Institute for China Studies found that in 2016, China made €35.1bn-worth of acquisitions in the EU, while EU acquisitions in China for the same year totalled a mere €7.7bn. This is because many more sectors of Chinese industry are closed to foreign investors compared to their counterparts in Europe.

Source link

Comments

China

Will Myanmar’s coup help China influence ASEAN?

The Myanmar crisis is becoming increasingly tragic, with the military’s use of lethal force now killing over 60 protestors.

Avatar

Published

on

On 16 January 2021, Chinese Foreign Minister Wang Yi concluded a visit to four ASEAN countries. One destination was Myanmar, the upcoming country coordinator of the ASEAN–China dialogue and now centre of international attention after the country’s military seized power.

Loading...
(more…)

Continue Reading

China

Rapid growth in China post-COVID makes it ripe for investment

Being “first in and first out” of COVID-19, China is the only country among the G20 that is thought by the Organisation for Economic Co-operation and Development (OECD) to have increased GDP in 2020.

Avatar

Published

on

China’s economy rebounded sharply.

In January 2020 as the world began to learn of COVID-19, many market observers predicted a challenging year for Asia. While there continue to be headwinds from the health and economic crisis, Asia, and China in particular, has demonstrated comparatively advantageous resilience.

Loading...
(more…)

Continue Reading

China

Mainland China is in no position to take Taiwan by force

Unlike his predecessors, Chinese President Xi Jinping has demonstrated greater intensity in the desire for reunification.

Avatar

Published

on

The situation across the Taiwan Strait has seemed to be on the brink of crisis since 2018. Beijing has sent numerous sorties of military aircraft to conduct exercises near Taiwan and frequently crossed the median line of the Taiwan Strait.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,974 other subscribers

Latest

Trending