On the security and defence implications of China’s influence on critical infrastructure in the European Union
INTA-PA-750148
Committee on International Trade · Rapporteur: Iuliu Winkler
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The Committee on International Trade sets out its suggestions for the Committee on Foreign Affairs to include in a resolution on China's influence on critical infrastructure in the EU.¶ It notes China was the EU's second largest goods trade partner in 2022, a record EU trade deficit of EUR 396 billion, and Chinese investment falling to a 10-year low of EUR 7.9 billion.¶¶ It says the trade and investment relationship is of strategic importance and should be rules-based, with the multilateral trading system and reciprocity at its core, and that the EU should keep its economic openness.¶¶ It acknowledges that foreign trade and investment can create security vulnerabilities, including over foreign ownership of, control of or access to EU critical infrastructure, and welcomes the Commission's proposed European economic security strategy.¶¶ It recalls that the Regulation on the screening of foreign direct investments addresses security and public order risks from outside investments, with critical infrastructure among the factors member states or the Commission may consider.¶
Committee position. The Committee on International Trade proposes that the Committee on Foreign Affairs include its suggestions in the resolution: a rules-based EU-China trade and investment relationship, continued EU economic openness, and recognition of security risks to critical infrastructure.¶¶¶
Key points
- The Committee on International Trade asks the Committee on Foreign Affairs to incorporate its suggestions into its motion for a resolution.¶
- It highlights that in 2022 China was the EU's second largest trade in goods partner and expresses concern about the increasingly unbalanced trade and investment relationship.¶
- It points to the EU's record trade deficit of EUR 396 billion in 2022.
- It notes Chinese investments in Europe continued to decline in 2022, reaching a 10-year low of EUR 7.9 billion.¶
- It is convinced the EU-China trade and investment relationship is of strategic importance and should be rules-based, with the multilateral trading system and reciprocity at its core.¶
- It emphasises that trade and investment drive sustainable growth, job creation and innovation, so the EU should maintain its economic openness.¶
- It acknowledges that foreign trade and investment can in certain cases create security vulnerabilities, including foreign ownership of, control of or access to EU critical infrastructure.¶
- It welcomes the Commission's proposed European economic security strategy, which aims to maximise the benefits of openness while minimising risks from economic interdependencies.¶
- It approves that the strategy explicitly recognises risks to the physical and cyber security of critical infrastructure as key security vulnerabilities for European economies.
- It recalls that the Regulation on the screening of foreign direct investments addresses security and public order risks from investments from outside the EU.¶
- It notes that critical infrastructure is among the factors member states or the Commission may consider in determining whether an investment is likely to affect security or public order.
Who is affected
- The Committee on Foreign Affairs, which is asked to incorporate the suggestions into its motion for a resolution.¶
- EU and Chinese traders and investors, affected by the trade and investment relationship and its security implications.¶¶¶
- Member states and the Commission, which may consider critical infrastructure when screening foreign direct investments.¶