EU trade officials and foreign ministers revealed the proposal during a meeting in Denmark on Tuesday, where discussions centered on how to ensure a fair and reciprocal investment relationship with China. The talks come ahead of a comprehensive policy paper on economic security that the European Commission is expected to unveil before the end of the year.
Danish Foreign Minister Lars Rasmussen said Europe must learn from both the United States and China in shaping its investment rules, arguing that Chinese access to European markets should come with tangible benefits for the bloc.
“If we invite Chinese investments to Europe, it must come with the precondition that we also have some kind of technology transfer,” Rasmussen told reporters. “We find ourselves in new circumstances, and Europe must adapt.”
For years, European officials have complained that China has gained significant technological advantages through joint ventures and investment conditions imposed on European companies operating there. The proposed rules aim to rebalance this dynamic by ensuring reciprocity in cross-border investments.
European Trade Commissioner Maros Sefcovic emphasized that while the EU continues to welcome foreign investment, such investments must be “real” — meaning they should create jobs and involve genuine technology and intellectual property exchanges, as European firms have long done in China.
In response, Chinese foreign ministry spokesperson Lin Jian said Beijing opposed “forced technology transfers” and criticized what it described as “protectionist and discriminatory practices” disguised as efforts to enhance competitiveness.
Several EU ministers backed the proposal, urging the European Commission to translate the discussions into concrete policy principles that would better safeguard Europe’s economic interests in a rapidly changing global landscape.