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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.

Indonesia Approves Permits for Five Apple iPhone 16 Models

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Indonesia’s communications ministry has granted telecommunications permits for five models of Apple’s upcoming iPhone 16, marking a significant step towards lifting a previous domestic sales ban. This move follows the issuance of local content certificates for 20 Apple products, including the iPhone 16, last week. However, Apple still requires an import permit from the trade ministry to begin selling the devices locally, according to Indonesia’s industry ministry.

The Indonesian government had previously banned iPhone 16 sales last year, citing Apple’s failure to meet local content requirements, which mandate that products contain a certain percentage of locally manufactured parts. This decision had raised concerns about potential protectionism and its impact on investor confidence in the country.

The five telecommunications certificates cover the following iPhone 16 models: iPhone 16e, iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The issuance of these permits comes shortly after Apple announced more than $300 million in investments in Indonesia, which will fund the construction of plants for manufacturing components and the development of a research and development center.

Apple has not yet responded to requests for comment regarding the permits. However, Dwi Handoko, a senior official from Indonesia’s communications ministry, confirmed that the five permits were issued at Apple’s request.

Lithium’s Role in EU’s Landmark Trade Deal with South America

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On December 6, after 25 years of negotiations, the European Union (EU) and five Mercosur countries—Brazil, Argentina, Uruguay, Paraguay, and Bolivia—reached a monumental trade agreement. This deal is poised to create one of the largest free trade zones globally, impacting over 700 million people and accounting for around 20% of global GDP.

The trade pact aims to foster increased trade and investment, reduce tariff and non-tariff barriers, and establish stable rules around sustainable development. However, not all EU members support the deal. Countries like France and Poland are concerned it might create unfair competition, particularly in agriculture.

Despite limited media attention, lithium—often called “white gold” due to its high value and key role in technology—emerged as a central element of the agreement. According to analysts at ING, lithium’s significance was perhaps understated, even though the EU is highly dependent on China for critical raw materials and Latin American countries, including Argentina, Brazil, and Bolivia, hold substantial lithium reserves. This strategic access is vital as Europe increasingly demands lithium for industries like electric vehicles and renewable energy.

Latin America is responsible for about 35% of global lithium supply, with Chile and Argentina being the largest contributors. The region also holds more than half of the world’s lithium reserves, underscoring its importance in the global shift to cleaner energy.

Strategic Implications

European Commission President Ursula von der Leyen emphasized that the trade deal could save EU companies €4 billion annually in export duties. Kaja Kallas, the EU’s foreign policy chief, highlighted that the agreement would ensure European access to critical raw materials, mitigating the risk of competitors filling the void.

The deal became feasible after shifts in global dynamics, such as rising protectionism and strategic considerations regarding China’s growing influence in Latin America. Federico Steinberg from the Center for Strategic and International Studies noted that the EU would gain enhanced access to public procurement markets, high-value services, and vital raw materials like lithium, while also reducing tariffs on agricultural products.

Germany’s industrial federation (BDI) praised the deal, viewing it as a crucial step toward securing raw materials for electromobility and renewable energy industries. In a time of increasing global trade fragmentation, the EU-Mercosur agreement stands as a strategic move to bolster free trade and access to critical resources.