Staying in Europe, the European Parliament, the Council and the Commission have reached a political agreement to monitor foreign direct investment. This comes as the European Union has seen rising investments from China. CGTN's Mariam Zaidi has more from Brussels.

Foreign Direct Investments can stimulate growth, innovation and employment.

And with its open markets, the European Union is one of the top destinations attracting big investment increasingly more from China.

MARIAM ZAIDI BRUSSELS "Is the current trade spat with the US a factor when it comes to where China puts its money? Just look at the numbers in the first half of the year, China signed off on 20 Billion dollars of mergers and acquisitions and 12 billion dollars of investment into the EU."

But worried that foreign countries or companies with close government links are accessing strategic sectors and buying up cutting edge tech firms, the EU - pushed by France, Italy and Germany - has been looking into new legislation to screen Foreign Direct Investments. Less than half of EU member states currently have legislation in place that allows them to review FDIs.

FRANCK PROUST FRENCH CENTER-RIGHT MEP "Of course this report concerns China, but also other countries, like Russia, or any other power which via a foreign investment wants to take control of a sector. The more control you give, the more dependency you create and that can become a threat for the employment in that sector. And some are strategic sectors, especially for the security of states."

Countries would retain the power to review and block on the basic of security or public disorder. But new rules also require scrutiny on the basis of non-discrimination and protection of sensitive information. The EU Commission would also have powers to issue advisory opinions.

So how could this impact China?

FRASER CAMERON DIRECTOR EU ASIA THINK TANK BRUSSELS "It's an expression of concern that China has been targeting specific sectors like robotics and artificial intelligence and therefore they want to ensure reciprocity - that famous level playing field. That's the aim of this legislation. I think over time Chinese leadership recognise that given the implication of what's happening with Trump's tariff war, they also need to make a deal with the EU."

The new rules have been provisionally agreed to by both the European Parliament and the EU Commission. But it needs EU Council approval. And that can take up to 18 months. Mariam Zaidi CGTN Brussels.