On October 15, Foreign Ministry spokesman Lin½£ presided over a routine press conference.

Lin Jian hosts a regular press conference (data map)

Asked by Bloomberg, the EU isly considering forcing Chinese companies to transfer technology to European companies in order to operate locally, a new measure aimed at making the EU industry more competitive.

As a principle, China supports Chinese and European enterprises to carry out trade and investment cooperation based on market principles, mutual benefit and win-win, oppose compulsory technology transfers in violation of WTO rules, oppose interference with normal production and business activities of enterprises, oppose protectionist discriminatory practices in the name of improving competitiveness.

Extended reading

European showdown: Chinese companies want to invest? Bring technology

Faced with the rise of China's scientific and technological strength, western countries have increasingly unloaded the disguise of "free market".

Bloomberg reported on October 14th that the European Union is considering introducing new regulations that require Chinese enterprises investing in Europe to meet specific conditions before they can enter key local markets, including forcing technology transfer, using a certain proportion of EU goods or labor, realizing product value-added in the EU, and even forcing joint ventures to enhance their industrial competitiveness.

Flag of the European Union (data map)

Although this set of rules, expected to be introduced in November, is applicable to all non-EU enterprises at the technical level, its core goal is to prevent China's manufacturing strength from causing an overwhelming impact on European industries.

"We welcome foreign direct investment, but only if it is 'real investment'." European Commission Commissioner for Trade and Economic Security Sevcovic told reporters after attending a meeting of EU Trade Ministers in Denmark on the 14th.

He pointed out that "real investment" means creating jobs, adding value in Europe, and transferring technology to Europe. "Just like European companies have always done when investing in China."

The report fears that the EU¡¯s so-called protectionist strategy, which imitates China, will target China, and is likely to trigger countermeasures, thereby damaging the two sides¡¯ still vital trade relations.

"We are considering a number of measures to cultivate strong, competitive and low-carbon European industries." European Commission spokesman Thomas Rainier said.

He added that "no final decision has been made on the specific scope and nature of these measures."

Over the past few years, the EU has promised to protect local manufacturers from "China shocks." Upcoming new regulations will accelerate this process and be introduced as part of the Industrial Accelerator Act legislative proposal.

European Commission President Von der Leyen said in September that the bill aims to boost the development of the next generation of industry in Europe.

¡°The future of clean energy technologies will still be created in Europe,¡± she said in her annual speech to the European Parliament, ¡°but to this, we also need to ensure that Europe has the raw materials needed for industry.¡±

"All in all, in the field of digital technology and clean energy technology, we want to be faster, smarter and more European." She added.

European Commission Executive Vice-President Dombrovsky said China is showing realism and using trade interdependence to gain profits.

Danish Foreign Minister Rasmussen also said after the EU trade ministers' meeting that the EU "should draw inspiration from these actions". "We are in a new environment. Although we agree with the concept of free trade, it is no longer the era of simply pursuing'free trade, free trade and re-free trade '."

Europe has been facing sluggish growth and weak investment, dragged down by the weak economy of Germany, its largest economy. As European industries seek ways to protect their business models, lobbying groups have rushed to call on the European Commission to take decisive action to gain access to technology that China already has an advantage.

"It is crucial that foreign investment in batteries and other clean energy technologies must be accompanied by conditions for technology transfer and upgrading of European labor skills." Victor Van Horn, head of the European Clean Energy Industry Organization, said,"This requires consensus at the EU level."

Rasmussen also supported this view: ¡°If we invite Chinese companies to invest in Europe, we must accompany a prerequisite that we also get some form of technology transfer.¡±

According to people familiar with the matter, one of the core elements of the upcoming proposal is aimed at supporting Europe's emerging electric vehicle industry. The content will focus on the transfer of knowledge on battery technology, as EU automakers tend to rely on China for components such as electric vehicle batteries, leaving them behind their Chinese counterparts such as BYD.

Chinese automotive companies have expanded in Europe: Byadi has invested in building factories in Hungary and pledged to expand production of electric vehicle batteries across Europe; and NINGD, one of China¡¯s most advanced battery manufacturers, is planning to form a joint venture with Stellantis Group to send 2,000 employees to build a 4 billion euro battery factory in Spain.

BYD has invested and built a factory in Hungary (data map)

According to the proposal, foreign car companies wishing to sell cars in the EU must purchase a specific amount of goods and services locally. One of the people familiar with the matter said that it is still considering requiring foreign-controlled factories to hire EU employees.

The proposal will also simplify the approval process for local EU businesses.

In fact, the EU has been fighting for a long time to force Chinese companies to exchange technology for the market.In February, a European study hypothesized that Europe might need to make regulations and other ways to require Chinese battery manufacturers to transfer technology in exchange for state aid, otherwise Europe could become a "assembly plant" for Chinese battery manufacturers.

In July this year, the Ministry of Commerce of China, together with the Ministry of Science and Technology, adjusted and released the "Catalogue of China's Prohibited and Restricted Export Technologies", in which "Battery Cathode Material Preparation Technology" was added as a restricted technology item, specifically including lithium iron phosphate (LFP) for batteries) preparation technology, lithium manganese iron phosphate (LMFP) preparation technology for batteries and phosphate cathode raw material preparation technology. This adjustment aims to strengthen the management of technology exports in key technologies and sensitive fields to safeguard national economic security and industrial competitiveness.

As for the so-called groundless accusation of "forced technology transfer" by the European side, Xinhua News Agency once pointed out that, in fact, there is no law in China that requires foreign enterprises to transfer their technology to Chinese partners. Technology transfer between enterprises is entirely based on contracts and is the result of voluntary transactions by market entities. China's requirements such as joint ventures and equity ratio restrictions in specific fields are the result of negotiations between China and WTO members, and are in line with WTO rules and China's commitments to join the WTO. This is a practice adopted by most countries and has nothing to do with forced technology transfer.

China has long emphasized that the China government has always attached great importance to the protection of intellectual property rights and has taken many powerful measures to protect the legitimate rights and interests of domestic and foreign intellectual property rights holders, and the results achieved are obvious to all. In terms of intellectual property cooperation, China and the EU have established an intellectual property working group mechanism. Through this mechanism, China and the EU have maintained effective communication and achieved positive results in many fields.