EU builds “economic shield” to defend itself against China and Russia – Executive Digest

The European Commission will approve a package of measures aimed at becoming an “economic shield” against China, Russia and eventually the United States.

Brussels will announce five measures designed to respond to growing global geopolitical threats: strengthening controls on foreign direct investment, harmonizing export controls, supporting research in dual-use technologies, improving research security and a new tool to curb sensitive knowledge leaks. Through European investments abroad.

Within this framework, the European Commission wants to force member states that do not yet use them to incorporate a control system for foreign direct investments in key industries to determine whether they pose a risk to European security.

Currently, EU member states are not obliged to implement this system.

To this end, Brussels is reforming the current investment control regulation with the aim of creating a cooperation mechanism between Member States and the Commission to exchange information and raise issues related to security and public order.

With this initiative, the European Commission wants to increase the protection of key sectors such as semiconductors, quantum computing, biotechnology, zero carbon industry, clean energy and critical minerals.

According to the European Commission, the new strategy “seeks to address risks to the EU's economic security, while ensuring that the EU remains a more attractive place for business and investment”.

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