Investment and national security: EU, US and China
16:15 - 17:30
Chinese investment in the US and Europe has surged in recent years, to €45.1 billion in 2016 from €2 billion in 2009. As China’s state-owned enterprises are leading this investment rush, Americans and European policymakers have raised serious concerns, on two grounds. First, is this investment distorting the principle of fair competition? Second, will Chinese purchases in such strategic sectors as transport, utilities, heavy machinery and high tech jeopardize national security? The US government has already blocked some proposed high-profile purchases, such as a Chinese government fund’s attempt to buy Xcerra, a Massachusetts-based provider of equipment for testing computer chips and circuit boards. The European Commission proposed an investment screening instrument at EU level. Are these concerns justified? Does the new investment legislation amount to protectionism?