EU pushback

Leaders oppose France president’s bid to curb Chinese takeovers

Leaders oppose French president Emmanuel Macron’s bid to curb Chinese takeovers.

A push by French President Emmanuel Macron to hand Brussels more powers to control Chinese investments in Europe’s key industries faced a setback from European Union partners who fear a rise of protectionism.

European leaders will discuss the thorny topic of international trade on the second day of an EU summit today, as Europe seeks to champion free trade against the protectionist policies of US President Donald Trump.

But Macron, quietly backed by Berlin, wanted to put a special focus yesterday on the wave of blockbuster investments by China in Europe that has startled Europeans.

According to a draft of the summit conclusions seen by AFP, opponents of Macron’s efforts have succeeded in watering down an earlier proposal.

In the latest draft, leaders will only ask the European Commission, the EU’s executive arm, to “examine the need” to screen investments from countries outside the EU, with China as the main target.

The leaders will then “revert to this issue at one of its future meetings”, delaying any discussion to an unspecified date, the conclusions will say.

Macron’s idea had faced significant opposition from Sweden, Finland and the Czech Republic, as well as European Trade Commissioner Cecilia Malmstroem, all highly suspicious of Frenchstyle meddling in the open market. EU governments agreed to at least include the idea in the summit conclusions as a gesture to Macron, whom leaders wanted to congratulate for defeating the farright Marine Le Pen in elections last month.

“If you look at the draft summit conclusions, you will find a collective effort to not make life excessively complicated for Macron – on the understanding that he will deliver on promises and reforms,” a senior EU diplomat said on condition of anonymity.