EU mulls tougher rules for Chinese state-aided companies on European buying spree: source
Reuters
Published Jun 05, 2020 03:21PM ET
By Foo Yun Chee
BRUSSELS (Reuters) - European Union antitrust regulators want more power to investigate Chinese companies benefiting from state subsidies seeking to acquire EU firms because of the distortive effect of such aid, a person with familiar with the matter said on Friday.
The move comes as officials worry about Chinese and other foreign companies acquiring European champions with cutting edge technologies, especially those weakened by the coronavirus pandemic.
The European Commission, which can vet subsidies provided by EU governments but has no power over foreign state aid, has told EU countries that it wants to prepare the ground for a legal instrument to ensure a level playing field, the person said.
EU competition enforcers want to look at all cases involving a foreign state-subsidised company and have the power to launch an investigation. That would include in both merger and non-merger cases.
The planned legislation would complement the bloc's foreign investment screening tool adopted in April which allows EU countries to intervene in cases of foreign direct investment in strategic assets, in particular if carried out by state-controlled or state-financed enterprises.
European Competition Commissioner Margrethe Vestager will present her proposal known as the white paper on foreign subsidies on June 17 and the new legislation would encompass the bloc's competition and trade policy.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.