EU moves to curb subsidies for Chinese investors, expert calls rules fair

Alicia García-Herrero, an economist at the Bruegel think tank, defended the EU's upcoming rules that restrict subsidies for foreign companies investing in Europe, describing them as "fair" despite pushback. The European Parliament is set to close the EU market to Chinese investors in areas where Beijing holds a strong position, going beyond the European Commission's earlier draft. García-Herrero cautioned that if China continues to subsidize its firms, European businesses would struggle to compete.

The legislation also permits public authorities to give preference to EU firms in key services such as energy, water, rail, ports, airports and postal operations, a sector valued at €2 billion annually. These steps are part of a broader effort to protect the bloc's market while trade negotiations with China continue, with the EU running a daily trade deficit of about €1 billion with Beijing.