The European Union responded to the rising tide of technology, energy, and other business acquisitions by mainly Chinese companies with new legislation. The new rules will act as a framework for screening foreign direct investments for potential security threats. The EU joins Australia, Canada, Japan, and the U.S. in taking steps to boost their national security investment review processes.
In Legal Week’s “Europe to Monitor Foreign Investments, but Don’t Expect a European CFIUS,” Morrison & Foerster Berlin partner Felix Helmstädter responds to the comparison of this new legislation to CFIUS, stating that “At the EU level, it's weaker than CFIUS control. The commission does not have the ability to block or restrict [an investment].”