Core Viewpoint - The European Union (EU) is planning to implement new regulations that will require foreign companies, particularly Chinese firms, to transfer core technologies as a condition for investment in key EU markets, which contradicts the principles of free market and fair competition [3][4][10]. Group 1: EU's New Regulations - The EU is set to introduce regulations in November that will mandate foreign companies to meet three conditions: forced technology transfer, use of EU goods and labor, and value addition within the EU [3][4]. - The EU's stance is framed as a "reciprocal principle," but it is criticized as a blatant form of "technology extortion" [4][10]. Group 2: Criticism of EU's Actions - The EU's demands are seen as hypocritical, especially since it has long accused China of enforcing technology transfers without legal backing [3][4]. - The EU's actions are interpreted as a response to its declining industrial competitiveness, particularly in emerging sectors like clean energy and electric vehicles [6][10]. Group 3: Responses from China - China's Ministry of Foreign Affairs has strongly opposed the EU's proposed forced technology transfer, emphasizing that such actions violate World Trade Organization (WTO) rules [8][10]. - China has the capability to implement reciprocal measures against the EU, potentially harming European companies that rely on such extortionate practices [10][12]. Group 4: Implications for International Business - The EU's approach is viewed as damaging to its credibility in the international business community, as it sets a precedent for treating foreign investments with hostility [10][12]. - The actions of the EU could lead to a significant reduction in foreign investment, transforming Europe into an "investment desert" [10][12].

Core Viewpoint - The European Union (EU) is considering mandatory technology transfer from Chinese companies operating in Europe to enhance its industrial competitiveness, which has been met with strong opposition from China [1][3]. Group 1: EU Measures - The proposed measures will apply to Chinese companies seeking to enter key digital and manufacturing markets, such as automotive and battery sectors [1]. - Companies may be required to use a certain percentage of EU goods or labor and add value to products within the EU [1]. - The measures are part of the EU's "Industrial Acceleration Bill" and are expected to be announced in November [1]. Group 2: EU Officials' Statements - EU Trade Commissioner Maroš Šefčovič emphasized that foreign investments should create jobs and add value in Europe, similar to what European companies do in China [2]. - Danish Foreign Minister Rasmussen suggested that the EU should learn from the experiences of the US and China regarding investment conditions and technology transfer [2]. Group 3: Analysis of Impacts - Experts suggest that the EU's approach is targeted and aims to use technology transfer as a barrier for Chinese companies, potentially leading to a "de-risking" effect by pushing unwilling firms out of the market [3][4]. - The implementation of such measures could result in missed opportunities for Europe if companies exit the market due to unwillingness to comply with technology transfer conditions [4]. - Even if some companies agree to the technology transfer, it may create future cooperation issues as such agreements would not be based on mutual consent [4].