On September 13, 2017, the European Commission (the Commission) adopted a proposal for a regulation establishing a framework for the screening of foreign direct investment (FDI) into the EU on the grounds of security or public order (the proposed Regulation).
This means that, as in the US, significant FDI in the EU will be subject to a rigorous screening and approval process once the proposed Regulation comes into force.
Why is the EU launching this FDI screening framework? What is the EU FDI Screening Framework? Will the upcoming EU FDI screening framework be comparable to CFIUS? What impact will EU FDI screening have on Chinese investments? We aim to answer these questions in this article.
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