EU self-harming by shutting door on Chinese investment

The new restrictions on investment expected to be introduced by the European Union belie its commitment to free trade and globalization, and will put a brake on the momentum of Chinese investment in the EU, which does not bode well for their strategic partnership - or indeed the economies of some EU members.

In sharp contrast with China's recent efforts to open its market wider to foreign investment, by significantly improving its market access, the EU has drafted its first unified rules to restrict foreign investment on security grounds.

Agreement on a draft legislation to screen foreign direct investment is expected to be reached between the European Parliament and EU governments on Tuesday, with the supposed aim of countering threats to "critical infrastructure" in the energy, transport, communications and financial industries and "critical technologies" such as semiconductors, robotics and artificial intelligence. Since these are the areas in which Chinese companies are now looking to invest, the restrictive measures are widely viewed as targeting China.