25
JAN 2024
The proposals that the EU Commission presented yesterday Wednesday to spell out its "Strategy for Economic Security" officially presented in June last year in more detail initially refer to foreign investments in the EU. These have long been strictly controlled by the majority of states, especially when it comes to investments from China. For example, Germany has restricted or prohibited this several times in the past when it came to investments in industries considered safety-relevant or in so-called critical infrastructure (german-foreign-policy.com reported [1]). This is now also to be pushed for the - relatively few - states that have not yet made any restrictions or, such as Greece and Bulgaria, simply do not have investment control systems. 2] The EU Commission insists on harmonizing national rules and establishing a "minimum scope" in which all Member States must review foreign investments."[ 3] In addition, under certain circumstances, investments by companies from EU countries should also be controlled - if the respective companies are controlled by persons or companies from a non-EU country.
Exports from EU countries to China are also to be more controlled. However, EU Commission President Ursula von der Leyen has had to make noticeable compromises. Originally, von der Leyen had planned to create a blacklist by September last year of products that may no longer be exported to China or at most with clear restrictions, such as high-tech semiconductors or technologies for quantum computers and artificial intelligence. 4] The model was recognizable US regulations with which Washington wants to keep Beijing in technological backlog in the long term; she obviously wanted to take over von der Leyen for the EU.[ 5] That did not succeed. Not only is the aforementioned black list still not available today. The Commission also announced yesterday Wednesday that it had only created a "White Paper on export controls" that is "fully in line with already existing regulations at EU and multilateral level", i.e. does not bring any significant expansion of export restrictions. However, a "Commission recommendation for better coordination of the national control lists" is planned for the summer. 6] This could be associated with the attempt at a tightening.
Von der Leyen had to accept a sharp setback in trying to subject investments by EU companies in China to strict controls in addition to exports. A US regulation also served as a model, in this case the Biden administration's decision to examine and possibly prohibit investments by US companies in China in the future if they serve the production of high-tech semiconductors, quantum computers or artificial intelligence technologies. Washington had introduced corresponding rules in August last year [7] and urged with all his might that his allies take them over quickly. Von der Leyen had campaigned for this as well as Federal Minister of Economics Robert Habeck, who had already publicly demanded in May last year that an "outbound investment screening" according to the US model be implemented. 8] The attempt failed. The EU Commission announced yesterday that it had created another "White Paper" - "on investments in third countries" - which now proposes to collect data on relevant industries, evaluate them and, if necessary, submit a new legislative proposal next year. 9] There is no talk of concrete steps towards investment controls.
The attempt to effectively transfer US regulations to the EU, which von der Leyen and Habeck made, not least with the German economy, has failed. For example, in August last year, it was said that "the economy" was making "pressure" to strictly refrain from outbound investment screening; the economic policy spokesmen of the SPD and FDP openly spoke out against it. 10] In fact, German corporations can hardly do without the use of high-tech chips or artificial intelligence in their investments in the People's Republic. The head of foreign trade of the German Chamber of Industry and Commerce (DIHK), Volker Treier, had already warned immediately after Habeck's push in May 2023 that German companies were following "the discussion about a new state supervision of foreign investments with great concern." 11] Habeck even met with determined resistance in his own ministry. "The working level" there, it was said, "brakes mainly because of the unclear effects of the instrument." 12] "The concern" is "great that a new investment control will be created ... a bureaucratic monster that German companies suffer from because of lengthy controls". Ultimately, the economics prevailed against the transatlantic political group.
However, the cooperation of universities and research institutions in the EU with partner organizations in third countries, de facto especially with universities in China, is to be more regulated. For example, the EU Commission explains that research results from Europe could possibly be "used for military purposes in third countries or used in violation of fundamental values". Universities in EU states could also be "exposed to the malicious influence of authoritarian states." 13] The Commission therefore submits "a proposal for a Council recommendation" aimed at providing research in the EU with "more clarity, better guidance and stronger support" for cooperation with third countries. Although research cooperation cannot be doness-perped, it is probably said with regard to highly qualified research in China. But "risks for research security should be reduced." The maxim is: "As open as possible, as closed as necessary".
[1] S. about this The dialectic of the Chinese business.
[2] Brussels is rowing back when controlling foreign investments. Frankfurter Allgemeine Zeitung 25.01.2024.
[3] Commission proposes new initiatives to strengthen economic security. ec.europa.eu 24.01.2024.
[4] Carsten Volkery: EU presents anti-China plans. handelsblatt.com 20.06.2023.
[5] S. on this with investment bans against China.
[6] Commission proposes new initiatives to strengthen economic security. ec.europa.eu 24.01.2024.
[7] Sabine Gusbeth, Dana Heide, Felix Holtermann, Carsten Volkery: Biden regulates US investments in sensitive technologies in China. handelsblatt.com 10.08.2023.
[8] Martin Greive, Dana Heide, Moritz Koch, Julian Olk, Annett Meiritz: Habeck wants to control China business of German companies. handelsblatt.com 11.05.2023.
[9] Commission proposes new initiatives to strengthen economic security. ec.europa.eu 24.01.2024.
[10] Sabine Gusbeth, Dana Heide, Felix Holtermann, Carsten Volkery: Biden regulates US investments in sensitive technologies in China. handelsblatt.com 10.08.2023.
[11] Julian Olk: Foreign investment control: How Habeck surprised everyone with his advance. handelsblatt.com 11.05.2023.
[12] Sabine Gusbeth, Dana Heide, Felix Holtermann, Carsten Volkery: Biden regulates US investments in sensitive technologies in China. handelsblatt.com 10.08.2023.
[13] Commission proposes new initiatives to strengthen economic security. ec.europa.eu 24.01.2024.