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EU considers tech transfer requirements for Chinese investments in Europe

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The European Union is weighing the introduction of technology transfer and know-how requirements for Chinese investments in Europe, according to EU Trade Commissioner Maros Sefcovic and Danish Foreign Minister Lars Rasmussen, who spoke after a ministerial meeting in Denmark on Tuesday.

The discussions, centered on economic security, come ahead of a European Commission paper expected by year’s end outlining the bloc’s strategy for managing foreign investments amid rising geopolitical tensions with China.

Rasmussen said Europe must learn from China and the United States, both of which impose strict conditions on foreign investors. “If we invite Chinese investments to Europe, it must come with the precondition that we also have some kind of technology transfer,” he said. “We find ourselves in new circumstances.”

European officials argue that China has long benefited from mandatory technology transfers imposed on European companies operating in the Chinese market, whether through joint-venture requirements or licensing regulations.

Sefcovic said that while the EU continues to welcome foreign investment, these should be “real investments” that contribute to the bloc’s job creation, technological development, and intellectual property growth. “European companies have been transferring know-how to China for decades,” he said. “It is time for reciprocity.”

On Wednesday, Chinese Foreign Ministry spokesperson Lin Jian criticized the proposal, saying China opposes “forced technology transfer” and any “protectionist and discriminatory practices” disguised as competitiveness measures.

EU ministers broadly backed the initiative, with the Commission now tasked with translating the discussion into formal policy proposals by the end of the year.

Foreign Investors Pour Billions into Taiwan and South Korea Stocks Amid AI and Growth Optimism

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Foreign investors have shown renewed confidence in Asian equities for the third consecutive month in July, pouring record-level funds into Taiwan and South Korea, driven by optimism around AI technology and economic growth prospects. Taiwan attracted $7.78 billion—the highest inflow since the 2008 global financial crisis—while South Korea drew $4.52 billion, the largest since February 2024, according to LSEG data.

The MSCI Asia ex-Japan index rose 2% in July, marking its fifth straight month of gains, while Taiwan’s and South Korea’s key benchmarks advanced about 6% each. The two countries, dominant exporters of tech products, have become magnets for AI-related investments amid improving global trade relations and reduced tariff uncertainties.

South Korea’s appeal is boosted by shareholder-friendly reforms, political stability, and solid corporate fundamentals, although recent tax reform concerns have raised some investor caution.

Thailand also saw a return of foreign investment with $499 million inflows in July—the first since September last year—driven by attractive valuations following prolonged selling. However, political uncertainty, macroeconomic challenges, and a strong currency weigh on a more robust recovery, despite a 14% jump in the SET index, its best monthly performance since November 2020.

Meanwhile, Indian markets faced outflows exceeding $2 billion, breaking a three-month buying streak, while Indonesia and the Philippines also saw net withdrawals. Vietnam attracted $326 million as investors favored its strong growth outlook and favorable U.S. tariff terms.

Trump Administration Renegotiates Biden-Era Chips Act Grants, Says Commerce Secretary Lutnick

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The Trump administration is actively renegotiating semiconductor manufacturing grants originally awarded under the Biden-era CHIPS and Science Act, according to U.S. Commerce Secretary Howard Lutnick. Speaking before the Senate Appropriations Committee on Wednesday, Lutnick indicated that some of these awards may be significantly altered or even cancelled as part of efforts to secure better terms for U.S. taxpayers.

“Some of the Biden-era grants just seemed overly generous, and we’ve been able to renegotiate them,” Lutnick told lawmakers, emphasizing that the renegotiations aim to deliver greater value to the American public. “All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place.”

$52.7 Billion CHIPS Act Under Review

The $52.7 billion CHIPS and Science Act, signed by President Biden in 2022, was designed to bolster domestic semiconductor manufacturing and reduce reliance on Asia, particularly Taiwan and South Korea. Under the program, billions of dollars in grants were awarded to both U.S. and foreign chipmakers, including Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, as well as U.S.-based Intel and Micron.

Though many of these awards were signed before Biden left office, most of the funds have yet to be fully disbursed. The grant payments are generally structured to be released as companies meet specific production and investment milestones tied to their U.S. plant expansions.

TSMC Award Revised Amid Expanding U.S. Investment

Lutnick cited Taiwan Semiconductor Manufacturing Co. (TSMC) as an example of successful renegotiation. Under the original agreement, TSMC was awarded $6 billion to support its U.S. manufacturing expansion. Lutnick revealed that TSMC subsequently increased its planned investment from $65 billion to $165 billion, while still receiving the same $6 billion in federal funds.

Although TSMC confirmed in March that it would invest an additional $100 billion in the U.S., the company has not commented on whether the new investment was directly tied to renegotiated CHIPS Act terms.

White House Seeking Delays and New Terms

The renegotiation efforts are not new. In February, Reuters reported that the White House was already seeking to renegotiate several awards and delay some upcoming disbursements to ensure better returns on government spending.

Lutnick’s comments suggest that the Trump administration intends to continue scrutinizing past agreements to maximize taxpayer value and may block deals it deems wasteful or excessive.

AI Computing Capacity Also a Focus

During the hearing, Lutnick also addressed concerns about the global race for artificial intelligence computing capacity. He emphasized the administration’s commitment to ensuring that over 50% of global AI compute power remains based in the United States. This statement comes amid criticism of a Trump administration deal allowing the United Arab Emirates to purchase advanced American AI chips, raising fears about exporting critical technology.