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The european union is considering forcing chinese firms to hand over technology to european companies if they want to operate locally, in an aggressive new push to make the bloc’s industry more.

The combination of trade tensions, political strains over china’s support for russia and europe’s relatively soft ev market have reduced the case for chinese investment in the eu, according to. The eu is preparing regulations requiring foreign companies, particularly chinese firms, to share technology, create local jobs, and use eu products/workers as conditions Relations are deteriorating with the eu doubling steel tariffs and china restricting rare earth mineral exports Subsidised chinese products have overrun eu industries and beijing’s looming restrictions on rare earth minerals are threatening to squeeze the continent’s manufacturers

But targeting china, with a page from beijing’s protectionist playbook, is likely to provoke a backlash, potentially damaging what remains a critical trading relationship. The eu's industry chief says the bloc plans to raise tariffs on foreign steel in a bid to counter cheap chinese imports Nearly 100,000 jobs have been lost in the european steel sector in the past. In september 2025, china imposed steep tariffs on eu pork, foreign minister wang yi toured central europe amid rising tensions with russia, and accusations of spying were dropped in london.

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