Brussels has stumbled in its attempts to further beef up its economic safeguards against rivals, including China, as EU member states demand more evidence before endorsing tighter rules. The European Commission has been pressing EU capitals to consider a regime to scrutinise outbound investments, alongside a better-co-ordinated system of export controls in highly sensitive technology.
But a draft of the EU economic security strategy, seen by the Financial Times, suggests that more analysis is needed before legal proposals are put forward as Brussels considers how best to enhance its trade and investment controls.
“There is a general reluctance [among EU capitals] to go too far,” said one EU official. “Caution and prudence is the word from the member states — let’s not jump ahead of ourselves when it comes to proposing new instruments like outbound investment screening.”