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The Foreign Subsidies Regulation (FSR) is the EU's response to foreign subsidies not tackled by the World Trade Organization (WTO) framework, notably from China. It aims to prevent subsidies that distort trading conditions. Starting on 12 July 2023, companies receiving distortive amounts of subsidies from non-EU countries can no longer take part in large company mergers that would affect the EU internal market. Furthermore, these companies can no longer obtain large public procurement contracts in the EU.
States use foreign direct investment (FDI) screening to prevent foreign investors from buying national assets at bargain prices or reducing competition, and to protect national security and critical infrastructure. As of 2023, FDI screening mechanisms are employed by around 50 countries among those participating in OECD discussions on freedom of investment. FDI screening methods include procedures to assess, investigate, authorise, condition, prohibit or unwind FDIs.
References
- ↑ Brzozowski, Alexandra (19 January 2024). "LEAK: EU to ask member states to screen foreign direct investments". Euractiv .
- ↑ Accaoui Lorfing, Pascale (2021), "Screening of Foreign Direct Investment and the States' Security Interests in Light of the OECD, UNCTAD and Other International Guidelines", Catharine Titi (ed), Public Actors in International Investment Law, Cham: Springer International Publishing, pp. 179–199, doi:10.1007/978-3-030-58916-5_10, ISBN 978-3-030-58916-5, PMC 7927795 , retrieved 2024-09-13
- ↑ "Screening framework for foreign direct investments". eur-lex.europa.eu. Retrieved 2024-01-24.
- ↑ Abdulrahman, Jovan; Sun, Likun (2023). The potential effects of the new FDI screening mechanism on Chinese FDI in Sweden.
- ↑ BMWK Öffentlichkeitsarbeit (September 2023). "Bericht des Bundesministeriums für Wirtschaft und Klimaschutz. Evaluierung des Ersten Gesetzes zur Änderung des Außenwirtschaftsgesetzes und der 15.–17. Verordnung zur Änderung der Außenwirtschaftsverordnung" (PDF). Federal Ministry for Economic Affairs and Climate Action : 15.