Last month, the Council of the European Union and the European Parliament reached an agreement on an EU regulation on foreign subsidies that distort the internal EU market. The regulation still needs to be formally adopted by the European Council and the Parliament before it takes effect, but the substance of the regulation is unlikely to change significantly. When it does come into force, one important implication will be that it creates an additional hurdle for many Chinese companies who want to participate in the EU market.

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