European Commission wants to change rules for Chinese projects in the European Union

The European Commission is preparing to tighten conditions for foreign, especially Chinese, investment. Brussels wants to prevent Chinese money from serving only to access the EU market and avoid tariffs.

Under the new rules, the Commission would oblige investors to employ local labour and, in sensitive sectors such as battery production, would also require technology transfer, the Financial Times reports.

If they failed to meet these conditions, products made in the EU's internal market would be subject to tariffs. The measure could significantly affect Hungary, which benefits from Chinese investment. Last year, 31 per cent of Chinese investment heading to Europe arrived in Hungary, creating tens of thousands of jobs.

Hungarian Foreign Minister Péter Szijjártó declared to the media, according to 24.hu, that the government he is part of "will continue to be an advocate of the least restricted global economic cooperation."

However, Brussels insists that Chinese investment must also mean a real transfer of knowledge and adequately paid jobs for Europe.

(sie)