European Union countries are becoming less strict about stopping Chinese companies from buying technology firms, according to a recent Politico report. This change marks a major shift in how the EU handles foreign investments in sensitive areas like artificial intelligence (AI) and semiconductors.
The original plan, led by European Commission President Ursula von der Leyen, was to protect Europe’s economic and national security. In January 2024, she introduced tougher rules for checking foreign direct investment (FDI), especially in critical tech sectors. These rules aimed to prevent countries like China from gaining control over key European tech firms.
However, Politico has seen a draft of the latest compromise text that shows several EU countries want to relax these rules. National governments are pushing back against the European Commission’s strict FDI screening plan. Instead of strengthening checks, they want to make it easier for foreign firms—including those from China—to invest in EU tech companies.
This internal resistance may weaken the EU’s ability to protect its technology industry from foreign influence. The change also suggests that economic interests may be taking priority over security concerns. Some countries in the EU appear more interested in encouraging foreign investment rather than blocking it.
The FDI screening reform was one of von der Leyen’s key strategies under her first term. It was part of a broader “economic security” agenda to secure Europe’s tech future. But with countries now watering down the rules, the future of that plan remains uncertain.
According to Politico, this could open the door for more Chinese takeovers in Europe’s high-tech sector—something that the original rules were designed to prevent.
Be First to Comment