EU's new FDI screening should not target China

The European Union has long projected itself as the most open economy for foreign direct investment. But after Tuesday, when the European Council approved a new screening framework for FDI coming into the EU, that is likely to be less true.

The approval concluded the legislative process on the proposal, which EU politicians believe will help safeguard Europe's security, public order and strategic interests when it comes to foreign investment in the EU.

While the framework does not publicly claim to target Chinese FDI, concern over growing Chinese FDI in the EU has been widely viewed as a major reason for the legislation. It means that Chinese FDI coming into the EU might be subject to disproportionate scrutiny, even discrimination in the coming years.