Headlines
EU floats conditions such as tech transfers for China investments
Published by Global Banking and Finance Review
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
The EU is considering technology transfer conditions for Chinese investments to ensure economic security and fair trade practices.
HORSENS, Denmark (Reuters) -The European Union is looking into setting pre-conditions for Chinese companies investing in Europe, including transfers of technology and know-how, the EU trade chief and Denmark's foreign minister said on Tuesday.
EU ministers discussed the bloc's economic security during a meeting hosted by Denmark, now holding the bloc's rotating presidency, ahead of a comprehensive paper the European Commission is set to present on the topic by the end of the year.
Danish Foreign Minister Lars Rasmussen told a news conference that many in Europe thought that, by playing by the rules, they could emerge as winners. He said the EU should take some inspiration from the U.S. and China in setting conditions.
"If we invite Chinese investments to Europe, it must come with the precondition that we also have some kind of technology transfer," he said. "I don't think we have completed that discussion, but we find ourselves in new circumstances."
The EU argues that China has benefited from large-scale technology transfers from European businesses set up in China, such as transfers made a condition of market access or via rules that mandate joint ventures with Chinese companies.
European Trade Commissioner Maros Sefcovic said the EU welcomed foreign investment, but these needed to be "real investments."
This meant they created new jobs in the bloc and involved transfers of technology and intellectual property rights "as European companies have been doing when they've been investing in China."
Many EU ministers had brought these issues up, Sefcovic said, and it was now up to the Commission to translate this into concrete principles and proposals.
(Reporting by Philip BlenkinsopEditing by Bernadette Baum)
Technology transfer refers to the process of sharing or disseminating technology, knowledge, and skills from one organization or country to another, often to enhance innovation and economic growth.
Foreign investment involves investing capital in a country by individuals or entities from another country, which can include purchasing assets or establishing business operations.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day affairs of the EU.
Investment conditions are specific requirements or stipulations that must be met by investors, often related to the transfer of technology, job creation, or compliance with local laws.
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