Finance
China calls on EU not to hurt enterprises' investment confidence
Published by Global Banking and Finance Review
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Quick Summary
China urges the EU to maintain investment confidence amid plans to phase out Chinese suppliers, citing concerns over protectionism and economic growth.
China Urges EU to Maintain Investment Confidence Amid Restrictions
China's Call for Fair Investment Practices
BEIJING, Jan 19 (Reuters) - China foreign ministry on Monday called on the European Union not to hurt enterprises' confidence in investing there following an FT report of a move to phase-out Chinese suppliers from key EU infrastructure.
Concerns Over Protectionism
In a faxed comment to Reuters regarding the report, the Chinese ministry called restricting Chinese firms without legal basis "naked protectionism" and urged the EU to provide a fair, transparent and non-discriminatory business environment for Chinese companies.
EU's De-risking Strategy
The FT reported on Saturday that Brussels is to propose phasing out Chinese‑made equipment from critical infrastructure, barring companies such as Huawei and ZTE from telecom networks and solar energy systems.
Impact on Technological Progress
The proposal will be presented on Tuesday as the EU revamps its security and tech policy, the report said.
The EU has grown more cautious toward Chinese enterprises' involvement in critical infrastructure particularly as part of its broader "de-risking" strategy.
"Turning trade into security and political issues will hinder technological progress and economic growth and to no one's good," China's foreign ministry said.
(Reporting by Ethan Wang, Shi Bu and Ryan Woo; Editing by Toby Chopra)
Key Takeaways
- •China urges EU to avoid harming investment confidence.
- •Concerns over EU's move to phase out Chinese suppliers.
- •China labels restrictions as 'naked protectionism'.
- •EU's de-risking strategy affects critical infrastructure.
- •Potential impact on technological progress and growth.
Frequently Asked Questions about China calls on EU not to hurt enterprises' investment confidence
1What is investment confidence?
Investment confidence refers to the degree of certainty investors have regarding the potential returns on their investments, which can be influenced by economic conditions and regulatory environments.
2What is protectionism?
Protectionism is an economic policy aimed at restricting imports from other countries through tariffs, quotas, or other regulations to protect domestic industries.
3What is a de-risking strategy?
A de-risking strategy involves reducing exposure to risk, often by withdrawing from certain markets or sectors, to protect a company's financial stability.
4What is technological progress?
Technological progress refers to advancements in technology that improve efficiency, productivity, and innovation within industries, contributing to economic growth.
5What are critical infrastructures?
Critical infrastructures are essential systems and assets, such as transportation, energy, and telecommunications, that are vital for the functioning of a society and economy.
