The European parliament has approved a proposal ensuring greater oversight of foreign investments into the bloc, reports Reuters, amid concerns regarding the frequency and security of Chinese acquisitions of European companies.
Under the proposals more sectors would now be considered “critical” and therefore eligible for closer scrutiny by EU regulators. The bill will now have to be passed by the European Commission and Council, with hopes for implementation by the end of 2018.
The bill also stresses investments that have state-backing with an aim to acquire key technologies -thought to be a clear reference to the recent bombardment of Chinese state-run enterprises that have bought out European rivals.
“Without falling into protectionism, it is time to show that Europe is no longer taking a naïve stance on globalisation,” said European MP Frank Proust.
“We are against shady or harmful investments, in particular those that meet political ambitions to take control of industries or technologies,” he said.