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European countries Will Need to protect their Businesses from Chinese takeovers, says EU Commissioner

European nations should purchase stakes in organizations to offset the danger of Chinese takeovers, the Commission said, a part of the EU’s efforts to secure its companies amid the coronavirus epidemic.

It’s been long emphasized by some that particular businesses perhaps targeted at Chinese rivals, however, the sharp economic recession resulting from the recent downturn and steep drops in share prices throughout the continent have significantly increased the vulnerability of companies for prospective foreign bids.

Margrethe Vestager, European Competition Commissioner, told the Financial Times: “We do not have some problems of nations acting as market participants should need be — should they supply shares in a business, should they wish to avoid a takeover of this sort.

“Significantly, one knows that there’s a real threat that companies who are vulnerable could be the object of a takeover,” Vestager explained.

“The problem now actually underlines the requirement so we work very intensively.

Possible changes were considered before the coronavirus outbreak and if there’s not likely to be immediate actions, Vestager did state she wanted regulations which acted as a hindrance and that these ought to be drawn up” as quickly as possible”.

The modifications would aim corporations backed or owned by non-EU authorities, to tackle largely German and French concerns, their fiscal strength grants them an unfair advantage over European rivals.

This is just one suggestion in a string of steps being taken by the European Commission to assist the continent’s businesses.

The EU has declared relaxing state aid legislation, permitting nations to help reestablish or perhaps nationalize certain companies that might face closure given the current, sharp economic recession.