[KITA New] EU, pursues establishment of first economic security strategy

                                                       

EU, pursues establishment of first economic security strategy

EU, pursues establishment of first economic security strategy…

For overseas investment and export controls regarding sensitive technology

 

EU, pursues establishment of first economic security strategy…

For overseas investment and export controls regarding sensitive technology

 

European Commission, announces “communication” containing policy concept…

Actually an aim at China

 

 

For the first time in history, the European Union is pursuing a comprehensive economic security response strategy.

 

On June 20 (local time), the European Commission, which is the executive branch of the E.U., announced that a Communication named “A European Economic Security Strategy” had been adopted at the weekly meeting of its members.

 

The Communication, which is not legally binding, is a document which contains the direction of the policy concept that the European Commission is to pursue. In general, with the adoption of the Communication, the necessary discussion and legislation process for pursuit of the policy begins.   

 

This Communication is to be discussed in detail at the E.U. Summit that is to be held at the end of this month.

 

The most conspicuous section of the 14-page Communication revealed on this day, was the part implying regulation of “overseas investment” of E.U. products and technology.

 

The European Commission said that “We will cooperate closely with member states, and investigate security risks that could possibly arise due to the overseas investment (of E.U. companies),” and explained that it plans to form a consultative group consisting of experts from each of the nations.

 

In addition, based on the results of the investigation, it revealed that “We shall consider possible measures to cope with security risk related to overseas investment in order to propose a new initiative by the end of the year.”

 

The E.U. will also strengthen export control to prevent overseas leakage of “dual use” product groups that have the potential of being diverted for use for military purposes

 

The European Commission stipulated in the Communication that “Strengthened cooperation (among member states) is demanded in order to prevent the leakage of sensitive new technology, including dual use products.”

 

For this, it remarked that it shall implement completely the existing dual use-related export control provisions, and review a new proposal to guarantee its effectiveness.

 

Moreover, it shall review the provisions regarding evaluation of foreigners’ direct investment, and also pursue the strengthening of cooperation with third countries for stabilization of the economic security supply chain.

 

The establishment of this recent economic security strategy is interpreted as a measure actually aiming at China.

 

Before the visit to China in March, Ursula von der Leyen, the President of the European Commission, had announced that de-risking was the new policy towards China, and had revealed that an economic security strategy would be announced.

 

At that time, President von der Leyen said, “Severing ties with China is neither possible, nor adheres to the interests of Europe…Rather than disengaging with China, we must focus on eliminating the risk factors.”

 

However, the E.U. did not mention China directly in neither the Communication nor the press release.

 

However, it explained that “Amidst the heightening geo-political tension and acceleration of technological advancements, we shall focus on minimizing risks that arise due to the inflow of certain economies, and maintaining economic openness and dynamism to the utmost.”

 

(Provided by Yonhap News)

By - KITA.Net (http://kita.org/about/newsView.do?id=&no=2797&searchWrd=&pageIndex=1)