EU Tightens Foreign Investment Screening Across Strategic Sectors and Ports

The European Parliament has adopted new legislation that makes foreign‑investment screening mandatory in all EU member states for sectors deemed strategic, such as defence, semiconductors, artificial intelligence, critical raw materials and financial services. The rules expand screening to transactions involving subsidiaries controlled by non‑EU investors, require closer cooperation between national authorities and the European Commission, and will take effect after Council approval with an 18‑month implementation period.

At the same time, the EU is drafting guidance to curb the growing influence of Chinese state‑linked firms in European ports. The draft highlights concerns over ownership stakes in key maritime hubs—including Hamburg, Rotterdam and the fully Chinese‑controlled Port of Piraeus—and calls for stronger scrutiny to prevent undue foreign control that could affect economic security, military mobility and expose infrastructure to organised‑crime risks. The move reflects broader worries about geopolitical tensions, supply‑chain vulnerabilities and parallels with prior reliance on Russian energy.