Brussels announced a tightening for Chinese investments. The new rules include the employment of local labor and technology transfer so that projects are not just assembly plants.
The European Commission is preparing to tighten the conditions for foreign, especially Chinese, investments. The goal of Brussels is that investments from China are not only used to access the EU market and avoid tariffs. This was reported by the Financial Times on Monday, and according to the portfolio.hu server, it may have a major negative impact on Hungary as well, reports the TASR reporter in Budapest.
Hungary, with significant state subsidies, in cooperation with Chinese companies, is launching or planning projects in the battery and automotive industry worth several billion euros. Due to the lack of local Hungarian workforce, they employ foreign workers mainly from Asia, the server writes.
New rules for investors
According to the new rules, Brussels would oblige investors to employ a local workforce, and in certain industries, such as battery production, the EC would also require the transfer of technologies so that investments are not just about building assembly plants.
If the above conditions were not met, such products produced on the EU internal market would also be subject to customs duties, according to the Commission’s proposal.
