The EU works to prevent Chinese takeovers of deeptech businesses.

The European Commission says it would keep new rules on European venture capitalists mild, but it wants to make it more difficult for investors from other nations, such as China, to make large investments in EU businesses creating crucial technology.In the midst of growing US-China competition, the EU executive on Wednesday unveiled a long-awaited set of steps to safeguard its deeptech firms and stop intellectual property from leaking to adversary nations.It suggested amending its foreign direct investment screening law to mandate that all 27 EU nations keep an eye on and possibly prevent foreign takeovers of tech companies in the four sectors the EU deems most sensitive: artificial intelligence, advanced semiconductors, quantum, and biotechnology.

Margrethe Vestager, the vice president for digital and competition at the Commission, told a press conference that the measures, which are now being debated with the member states, will also target takeovers from companies that are based in the EU "but controlled from the outside."This implies that large investments from Chinese companies or EU-based companies with LPs in other nations are more likely to be rejected for startups. According to Vestager, "Europe cannot simply be the playground for bigger players in this competition; we need to be able to play ourselves." The rivalry for the technologies we need the most is severe worldwide.