00:03Three MEPs have agreed in a report to tighten the requirements for foreign direct investment
00:08in the EU, restricting access to the European market for Chinese investors that are dominant
00:13in this sector.
00:14The report comes from the European Parliament's rapporteurs on the proposed Industrial Accelerator
00:19Act presented by the European Commission last March.
00:22It creates a European preference on the EU market to favour products made in Europe in
00:28a move to protect strategic EU industry sectors from foreign competition.
00:32In sectors where China is dominant, such as electric vehicles, solar panels, critical
00:38raw materials and batteries, the rapporteurs want to impose strict requirements on investments
00:43exceeding 50 million euros.
00:45Foreign investors could own no more than 49% of the share capital of the EU target and
00:50they would have to invest through a joint venture with an EU entity.
00:53They would also be required to transfer technologies to the Europeans, invest 1% of their annual
00:59revenue into research and development and source at least 30% of manufacturing inputs from within
01:05the bloc.
01:06The report will now have to be adopted by EU lawmakers before discussions start with EU
01:10member states.
01:11It sends a signal to China that Europeans will not give up in their attempt to protect the
01:16EU market from China's aggressive industrial policy.
