EU on US China Investment Restrictions: "Engaged with Administration... Expecting Cooperation"

The European Union (EU) announced on the 10th (local time) that it will closely analyze the United States' measures to restrict direct investment in China.

Major foreign media reported that an EU Commission spokesperson stated in a position paper sent via email on the same day, "We are in close contact with the U.S. administration regarding (the U.S. regulations on investment in China)."

The spokesperson added, "We expect continuous cooperation with the United States on this topic." The EU's mention of 'continuous cooperation' is interpreted as a reference to the fact that the EU is also working on similar legislative efforts.

Earlier, in June, the EU officially announced its first-ever 'Economic Security Strategy,' signaling its intention to curb excessive third-country investments in EU companies possessing sensitive technologies such as quantum technology, advanced semiconductors, and artificial intelligence (AI). To this end, it plans to form a consultative body composed of experts from each member state to devise measures addressing security risks related to overseas investments by the end of the year.

The EU is currently promoting a new China strategy called 'de-risking,' aimed at reducing supply chain dependence on China and correcting 'unfair' trade practices. Thus, the investment restrictions on third countries are widely interpreted as measures targeting China.

Previously, U.S. President Joe Biden announced an executive order regulating investments by American capital, including private equity and venture capital, in three fields in China: advanced semiconductors, quantum computing, and artificial intelligence (AI).

U.S. companies must mandatorily report their investment plans in advance if they intend to invest in Chinese companies subject to these regulations. The authority to enforce regulations, including investment bans, will be held by U.S. Treasury Secretary Janet Yellen.

In response, China immediately strongly opposed the move, stating that "the United States has violated market economy principles."

This content was produced with the assistance of AI translation services.