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EU Officials are Taking a Fine-Tooth Comb to Biden’s Executive Order Against Investments in China

As America is planning to curb investments in China, EU is also looking at the possibility. (Photo: iStock)

As EU officials are slowly going back from their summer holidays, the latest move of the US to curb investments in China have surely been piled in their inboxes.

As America is planning to curb investments in China, EU is also looking at the possibility. (Photo: iStock)

EU officials have thoroughly been looking at President Biden’s plan to curb China’s investment. The latest move by the US to curb investments in China may be burning hole in their inboxes.

According to The South China Morning Post, some EU officials that are returning early are already taking a fine-tooth comb regarding President Biden’s executive order last week. Although they are mindful of the tasks that the European Commission will face in pulling together it’s on outbound investment screening initiative to be done by the end of the year.

However, there is no immediate plans to replicate the move by President Biden, Senior EU officials are relieved that the plan was “much narrower” than expected. EU officials like EU trade spokeswoman Miriam Garcia Ferrer stated that they want to protect their citizens and businesses from the risks that could arise from sensitive technology and investments that are flowing out. 

She also added how the EU officials are in close contact with the US administration and are looking forward to continued cooperation regarding the topic.

READ ALSO: Joe Biden And Xi Jinping | Biden Still Looks Forward To Meeting Xi This Year

Experts have said that if Biden’s Plan to block venture capitals and private equity flowing into China’s technology sectors will work, it is important to have partners than are on board – otherwise banned dollars would theoretically be replaced by euros.

For EU officials that are skeptical of the claims made by the US about pursuing a “small yard, high fence: approach to China, it might as well be a bait, by using the EU term “de-risking” in lieu of “decoupling”.

Washington has continuously been urging EU and EU officials for some years to restrict investments in China’s technology sectors, arguing that they flow to the military complex and are risk forfeiting Western head-starts on some crucial industrial areas. EU officials downplayed the significance, insisting that there was no plan to screen China-bound investments, when this was discussed exploratorily at the insistence of the US last year at the meetings of the Trade and Technology Council.

However, on a trip last March, European Commision Chief Ursula von der Leyen released a joint statement with President Biden that signaled a hardening of the bloc’s attitude towards investments in China. There is a feeling that von der Leyen has released the strategy before convincing EU officials of the risks that investments carry.

READ ALSO: Man Being Charged With Attempted Murder Because Of Aiken Gunshot And Robbery.

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