In response to the EU considering making technology transfer a prerequisite for Chinese enterprises investing in Europe, the Chinese Foreign Ministry stated that China opposes forced technology transfer that violates WTO rules, opposes interference with the normal business activities of enterprises, and opposes protectionist and discriminatory practices carried out under the pretext of enhancing competitiveness.
According to comprehensive foreign media reports, the EU is considering forcing Chinese enterprises investing in Europe to transfer technology to European companies as a condition for operating locally. This move aims to enhance the competitiveness of European industries.
Sources familiar with the matter revealed that these measures would apply to companies seeking entry into key digital and manufacturing markets such as automobiles and batteries. The proposed rules would also require these companies to use a certain proportion of EU-made goods or labor, and to create added value within the EU. Requiring the establishment of joint ventures is also one option under consideration.
Before the European Commission is scheduled to submit a comprehensive report on this topic by the end of this year, EU ministers discussed the issue of economic security at a meeting hosted by Denmark, the rotating presidency.
Danish Foreign Minister Rasmussen stated at a press conference that the EU should take lessons from the experience of the United States and China in setting such conditions: “If we allow Chinese investment in Europe, there has to be a precondition, and that is some form of technology transfer by us as well. I don’t think we’ve finished that discussion yet, but we’re in a new situation.”
The EU believes that China has benefited from large-scale technology transfers by European companies in China, for example as a condition for market access or due to regulations requiring joint ventures with Chinese firms.
EU Trade Commissioner Šefčovič stated that the EU welcomes foreign investment, but it must be 'genuine investment.'
He explained that this means investment should create jobs in Europe, achieve value-added in Europe, and transfer technology to Europe, 'just as European companies do when investing in China.'
Šefčovič noted that several EU ministers have raised the issue, and currently the European Commission must translate these demands into specific principles and proposals.
Foreign media point out this is a high-stakes gamble at a critical moment for Europe. Subsidized Chinese products are flooding EU industries, while Beijing’s export restrictions on rare earths could threaten local manufacturers. However, countering China by mimicking China's protectionist methods may trigger discontent and harm the still-crucial trade relationship.
On the 15th, Chinese Foreign Ministry spokesperson Lin Jian stated at a regular press conference that China supports trade and investment cooperation between Chinese and European enterprises based on market principles to achieve mutual benefit and win-win results. China opposes forced technology transfer in violation of WTO rules, opposes interference with normal business and production activities, and opposes protectionist and discriminatory measures under the pretext of enhancing competitiveness.