Concerns Grow Over the Need to Reduce Economic Dependence on China
Bloomberg News reported on the 14th (local time) that the European Union (EU) is considering measures to require Chinese companies seeking to operate in Europe to transfer technology to local firms.
According to Bloomberg, the EU, which has pledged to protect its domestic manufacturing sector from China, is reviewing such regulations as part of its proposed 'Industrial Promotion Act.' These measures would apply to companies seeking to enter digital manufacturing markets such as automobiles and batteries. The plan is also expected to include requirements for companies to use a certain percentage of EU-made goods or labor and to add value within the EU during production.
In relation to this, a source said that the regulations are expected to be announced next month. The source explained that, in principle, all companies outside the EU would be subject to the rules, but the real target is to prevent Chinese manufacturing from surpassing Europe.
Maros Sefcovic, the EU Commissioner for Trade, said after the EU Trade Ministers' meeting in Denmark that day, "We welcome foreign direct investment on the condition that it is a genuine investment." He further explained, "Just as European companies did when investing in China, this means creating jobs in Europe, adding value within Europe, and transferring technology to Europe."
Bloomberg pointed out that this EU strategy could harm relations with China, an important trading partner. Recently, the EU doubled its steel import tariffs, a move expected to hit low-priced Chinese imports and further escalate tensions between the EU and China.
Additionally, as China has recently introduced new export controls on key rare earth minerals, there are growing calls within the EU to reduce economic dependence on China.
EU spokesperson Thomas Regnier stated, "A range of measures are being considered to foster a strong, competitive, and decarbonized European industry," adding, "No final decision has yet been made on the exact scope and nature of these measures."
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