The EU on Tuesday set out a 10-point plan aimed at rebalancing relations with Beijing as fears grow about Chinese investment and influence on critical infrastructure, including new communication technology. European leaders will be asked to sign off on the proposals at when they meet next week in Brussels, with senior officials urging them to take action to protect EU values and standards, warning that China is a "rival" as well as the bloc's biggest trading partner.
The move comes with the US urging European allies to abandon plans to use Chinese firm Huawei in telecom infrastructure plans, especially 5G networks, arguing it could serve as a front for spying. The EU last month also took a major step towards toughening up scrutiny of foreign takeovers, with trade commissioner Cecilia Malmstroem acknowledging there was "no secret" about concerns over China.