Brussels is planning to force Chinese companies to transfer intellectual property to European businesses in return for EU subsidies as part of a tough

EU to demand technology transfers from Chinese companies

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2024-11-19 10:00:02

Brussels is planning to force Chinese companies to transfer intellectual property to European businesses in return for EU subsidies as part of a tougher trade regime for clean technologies.

New criteria requiring Chinese businesses to have factories in Europe and share technological knowhow will be introduced when Brussels invites bids for €1bn of grants to develop batteries in December, according to two senior EU officials. The pilot could be rolled out to other EU subsidy schemes, they said.

The requirements, while at much smaller scale, echo China’s own regime, which pressures foreign companies into sharing their intellectual property in exchange for access to the Chinese market. The criteria could be subject to change ahead of the tender, officials said.

The plans represent part of a hardening stance from Europe towards China as it seeks to protect companies in the bloc — subject to strict environmental regulations — from being undercut by cheap and more polluting imports.