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EU scrutiny of Chinese investment will increase

Tuesday, June 12, 2018


Investment screening in the EU.


The European Council is likely to vote in the autumn on a Commission proposal to introduce a foreign direct investment (FDI) screening mechanism in the EU. Although member states are divided on this issue, legislation is expected to be adopted by the end of the year.


  • The proposed mechanism could complicate EU-China relations.
  • It would enable more coordination and exchange of information on national foreign investment decisions.
  • If the mechanism is not adopted by the end of the year, it could be significantly delayed due to the May 2019 European Parliament elections.
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