The European Union’s Executive Vice-President for a Europe Fit for the Digital Age, Margrethe Vestager, endorsed member countries’ purchases of stakes in companies to counter the threat of Chinese takeovers. The endorsement comes at a critical time for the EU as it formulates plans to protect businesses amid the coronavirus (COVID-19) outbreak. Executive Vice-President Vestager emphasized that the current economic crisis has made many EU businesses vulnerable to takeover. Moreover, this risk also represents an opportunity for Beijing to gain a stronger foothold in the European market as China has now reportedly begun to recover from the pandemic. The true timeframe around China’s recovery from COVID-19, however, remains uncertain. China has been criticized for underreporting the number of new cases within its borders and could face a resurgence as it relaxes some restrictions.
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