Existing instruments to monitor FDI
In parallel, it is useful to examine an extension of exist-
ing instruments to monitor FDI and consider newinstru-
ments at the EU level, if necessary, that would take into
account current developments, particularly with regard to
competitive conditions distorted by state-backed invest-
ment.
Germany is a firm believer in open markets and
opposes protectionism, but a certain amount of self-pro-
tection is necessary to prevent selling off German interests
on the basis of unfair competition. However, the princi –
ple of non-discrimination must not be disregarded. Poten-
tial newregulations for foreign direct investment must
be in place and implemented independently of the coun-
try of origin. A formal or informal “lex sinica, ” i. E. A dis-
tinct treatment of Chinese investments, would be contrary
to the principles of a free market economy.
The key is to find a way between naively
selling off German interests and
activist protectionism. This path has yet to be identified by
Germany and the EU.
EU Forecast
euf:ba1.8i:62/nws-01