Original Bloomberg version behind paywall …

• Berlin is crafting a sweeping economic-security plan to shield strategic industries from China, targeting cabinet sign-off on Oct. 14 before seeking EU backing.
• Among the ideas on the table are fresh levies targeting hybrid electric cars, mandatory joint ventures, more stringent checks on both inbound and outbound investment, and a tighter export-control regime.
• Beijing has also criticized the EU’s proposed Industrial Accelerator Act, which would favor European-made products in public procurement and support schemes would create investment barriers and discriminate against Chinese companies.
• The European move comes amid a growing trade deficits with China.
• Some of the potential European measures discussed now mirror Chinese trade and investment policies, e.g., mandatory joint ventures (non-Chinese companies must not found a subsidiary in China as they need a Chinese partner that holds the majority of the venture), and exclusion from public procurement over security issues.

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