With the end of the year approaching, the European Commission is rapidly ramping up its de-risking efforts through a flurry of broadsides against Chinese firms – even as the bloc’s most powerful member states appear to be moving in different directions on China.
Foreign subsidy regulation probes were launched against online retailer Temu and Nuctech, a maker of airport scanning equipment, on Wednesday and Thursday respectively.
E-commerce giant Temu saw its Dublin headquarters raided by investigators looking for evidence of subsidies that distort the EU’s single market. This mirrored the commission’s dramatic raid of Nuctech’s EU offices last year. On Thursday, the commission announced it had deepened its probe into Nuctech.
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Early Thursday morning, meanwhile, negotiators from the European Council – made up of the 27 member states – and the European Parliament agreed on new rules that will make it mandatory to screen inbound investments in dual-use or military sectors.
While China is not named in the legislation, its hoovering up of important European assets inspired the original screening laws.
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The upgraded rules – to kick in after 18 months – will now make it compulsory to screen foreign bids for firms making sensitive technology such as AI, quantum computing and semiconductors, or in the critical raw materials and infrastructure spaces. Bids emanating from local subsidiaries of foreign buyers will also be reviewed.