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25th November, 2025

EU prepares tighter rules for Chinese investment



The European Commission is drafting new rules to tighten conditions for foreign investment – above all from China – the Financial Times reports.

The aim is to ensure that Chinese ventures in the EU do more than secure market access: they should also generate local jobs and transfer technological expertise.

The proposal is due to be unveiled on December 10.

The initiative is particularly important for Hungary, which has attracted a wave of large automotive and battery factory investments in recent years.

Stricter requirements could even cast doubt on the viability of some projects.

Attention is focused on CATL, which is building a €7 billion battery plant in Hungary, following an earlier German investment, and a €4 billion facility in Spain.

The planned rules are expected to define “local content’’ more precisely, using customs codes.

In practice, goods made in the EU by Chinese firms could still face partial duties if most of the supply chain lies outside Europe.

Analysts say the measure could help curb the “race to the bottom’’ among member states competing for investment.

Sources regularly consulted, with abbreviations used in text: Népszabadság (N); Magyar Hírlap (MH); Világgazdaság (VG); Napi Gazdaság (NG); Magyar Nemzet (MN); Népszava (Nsz); Kossuth Rádió news (KR); nightly TV news (TV).

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