EU countries and officials will begin discussions on a European Commission plan targeting foreign government-backed buyers of European companies.
The 27-nation European Union is concerned that Chinese companies receiving government financial support may buy European companies whose share prices have fallen due to the COVID-19 pandemic.
Announcing the proposal last year, the Commission said the measure targets subsidies that harm competition.
The measure also covers bids in public tenders to avoid foreign subsidies used to expand market share or enable European competitors to gain access to strategically important markets and critical infrastructure.
Both EU countries and their MPs agreed yesterday on the common position to be followed before the negotiations to finalize the proposal.
However, EU countries want the rules to be applied for takeovers of EU companies with a turnover of 600 million Euros ($633 million) and acquisition contracts of more than 300 million Euros.
The Commission, on the other hand, proposes that the new rules apply to acquisitions of EU companies with a turnover of 500 million Euros and to purchase agreements of more than 250 million Euros.
EU lawmakers, on the other hand, are pushing the bar down, demanding that the rules be adjusted to include more procurement and public procurement.
EU countries also want to reduce the five-year period, when the Commission can retroactively review subsidies granted before the regulation goes into effect.