China’s long shadow over the EU’s regulatory landscape

MLex Market Insight · China's Long Shadow Over The EU's Regulatory Landscape

Introduction

Date: 12 June 2020. Duration: 20:42

It’s the perennial question for European Union policymakers: Should the state aid granted to Chinese companies prompt regulatory responses? And if so, what form should those responses take? With Europe still smarting from the effects of Covid-19, a new policy initiative appears set to impose strong, tangible rules on Chinese investment in the EU — rules that could also hit other countries doing business in the bloc. While these new policy directions are being considered in Brussels, China is itself pondering how it can prevent local authorities supporting favored companies and, in so doing, create market distortions that reverberate throughout the country.