FRANKFURT—The European Union plans to unveil draft rules on Wednesday aimed at cracking down on state-subsidized foreign companies in Europe, a move that could allow regulators to pursue big Chinese companies in much the same way they have targeted U.S. multinationals such as
Apple Inc.
and Amazon.com Inc.
The legislation is the latest sign of Europe’s shifting stance toward China, the bloc’s biggest trading partner for goods and a crucial market for its exporters. While the new rules aren’t expected to single out China, analysts said large Chinese companies would be a primary target.
If approved by the EU’s 27 governments and the European Parliament, the rules would grant the bloc’s muscular antitrust authorities new powers to block foreign companies from making acquisitions in Europe or receiving public contracts if they are deemed to have benefited from government subsidies. Companies would face stiff fines if they failed to comply with…