New draft regulations announced by EU likely to hit Chinese exports, say analysts
Jan 27, 2024
Beijing [China], January 27 : The recently unveiled draft regulations by the European Union this week are likely to impact Chinese exports if enacted, contributing to heightened tensions between Beijing and Brussels, the Voice of America reported, citing analysts.
The regulations, disclosed on Wednesday, aim to safeguard the EU's economy and prevent sensitive technology from reaching geopolitical rivals. A statement accompanying the draft positioned the regulations as part of an initiative to bolster the bloc's economic security "at a time of growing geopolitical tensions and profound technological shifts," Chermaine Lee writes in VOA.
The comprehensive package includes measures to reinforce export controls, identify potentially risky foreign investments in the tech sector, enhance the security of sensitive research, and scrutinize foreign investments.
Chinese foreign direct investment into Europe has slowed in recent years, reaching an eight-year low in 2022, as concerns about supply chain, technology, and infrastructure security have grown, according to Clara Brandi, a professor of economics and political science at the German Institute of Development and Sustainability in Bonn, reported VOA.
The new limits come despite China's pleas for the EU to loosen limitations on high-tech items.
On the day the economic security package was announced, China's Chamber of Commerce in the EU issued a statement stating that more than half of the enterprises polled were concerned about the impact of the new screening process, VOA reported.
More than one-fifth of the 180 Chinese firms polled indicated they intended to grow their presence in Europe during the next one to three years, as well as boost their investment and merger and acquisition activity.
Notably, Chinese Premier Li Qiang met with European Commission President Ursula von der Leyen at the World Economic Forum in Davos, Switzerland, last week.
During the meeting, Li urged the EU to "uphold justice, compliance, and transparency in economic and trade matters" and "treat Chinese enterprises fairly." Li also urged the EU to proceed "prudently" as it implements restrictive economic and trade policies.
