On the security and defence implications of China’s influence on critical infrastructure in the European Union

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SUGGESTIONS

The Committee on International Trade calls on the Committee on Foreign Affairs, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Highlights the fact that in 2022, China was the EU’s second largest trade in goods partner; expresses concern about the increasingly unbalanced trade and investment relationship between the EU and China, which is also highlighted by the EU’s record trade deficit of EUR 396 billion in 2022;

2. Notes that Chinese investments in Europe continued to decline in 2022, reaching a 10year low of EUR 7.9 billion;

3. Is nevertheless convinced that the trade and investment relationship between the EU and China is of strategic importance and should be rules-based, with the multilateral trading system and the principle of reciprocity at its core;

4. Emphasises that trade and investment are key drivers of sustainable growth, job creation and innovation and that the EU should therefore maintain its economic openness;

5. Acknowledges that in certain cases, foreign trade and investment can create security vulnerabilities, including with regard to foreign ownership of, control of or access to EU critical infrastructure;

6. Welcomes the Commission’s proposed European economic security strategy, which aims to maximise the benefits of the EU’s economic openness while minimising the risks resulting from economic interdependencies; approves of the fact that the strategy explicitly recognises that risks to the physical and cyber security of critical infrastructure are key security vulnerabilities for European economies;

7. Recalls that the Regulation on the screening of foreign direct investments addresses risks to security and public order resulting from investments from outside the EU; notes that critical infrastructure is among the factors that may be taken into consideration by the Member States or the Commission in determining whether an investment is likely to affect security or public order.