Both foreign countries’ investments in Europe and Europe’s investments into foreign countries should be monitored and controlled across all levels of the European Union, said Latvian MEP Ivars Ijabs during debates held at the European Parliament on Tuesday, 22 November.
He stressed that European countries have already started limiting China’s investments in strategic sectors such as micro chip manufacture and sea ports. According to Ijabs, Europe limits exports of goods of strategic importance to Russian and China, but it is no less important to regulate investments of European companies in these two countries.
«There is no room for naivety in relations with China,» said the politician.
«Europe’s and America’s main global competitor is not particularly choosy when it comes to political instruments. Europe, too, should act unilaterally if and when strategic interests demand it,» stressed Ijabs.
Certain European government have already made specific decisions, said the MEP, adding that guarantees are no longer provided to companies that may benefit from slave labour or human rights violations in China. According to him, this principle should be expanded to the most important technologies that form the foundation of Europe’s long-term security in the broadest possible sense.
«We have control over exports and a tax on carbon emissions. This is why we need to make sure foreign investments are not used to circumvent this export control or to divert carbon dioxide emissions to countries with lower standards for emissions,» said Ijabs. «Like economic sanctions, investment control will not be for free.»
«It it is a price worth paying for our security and strategic autonomy. The sooner we understand this cost and evaluate the costs caused by our inaction, the better.»
The MEP invited the European Commission to come up with a proposal to review EU’s employed method for evaluation of direct foreign investments and foreign investment control measures based on the practice of application of anti-Russian sanctions and the competition between the US and China.
Ivars Ijabs was elected to the European Parliament in 2019 as a member of Attīstībai/Par! political party. He is a member of European liberal centrist faction Renew Europe.