Portugal's Prime Minister, António Costa, has mounted a stiff verbal assault on Germany and France in his defence of Chinese investment in the EU.
Costa has insisted that EU member states should not misuse new security measures applying to Chinese business by creating trade barriers across Europe.
France and Germany have demanded that EU countries follow their moves to screen non-EU investments in retaliation for the European Commission blocking a planned Siemens-Alstom merger.
The European Parliament has approved regulations to screen investments from non-EU countries, concerned that China is buying into sensitive technology and using contracts to spy on industrial and military targets.
But in an interview with the Financial Times, Mr Costa said EU countries should resist implementing protectionist policies despite the perceived threat.
In an interview with the FT, Costa said, “It is one thing to use screening to protect strategic sectors, it is another to use it to open the door to protectionism. Our experience with Chinese investment has been very positive. The Chinese have shown complete respect for our legal framework and the rules of the market.”
China has poured money into Portugal with its purchase of significant holdings in energy supplier, EDP, Luz Saudi, a private hospital group, and the insurer, Fidelidade.
Competition Commissioner Margrethe Vestager hit back at a Franco-German effort to alter the EU’s rules and said that Europe is better off pushing for a framework that provides fair competition.
