EU will be assertive with new trade defence tools

Significance

First cases pursued under the FSR show it could be one of the most far-reaching of the strategic autonomy measures introduced under this Commission. One Chinese company has already withdrawn from a public procurement tender in Bulgaria, and other cases are in progress.

Impacts

• Chinese companies investing in solar, wind, chips and electric vehicles are particularly vulnerable to FSR investigations.
• The EU may use FSR against US companies should transatlantic trade relations deteriorate under a Donald Trump presidency.
• The growing consensus favouring an assertive approach to China will not be damaged by the result of June's European Parliament elections.