Fearing the threat from tech giants in the US and China, the EU plans to bulk up its own “high-potential European companies” through a sovereign wealth fund

Details on the European Future Fund are now public.

According to media reports, which quoted an internal EU document, plans are afoot to set up the European Future Fund. Total fund capital will be €100 billion ($110 billion). The fund includes a mandate to invest in promising European corporations and bring them up to speed on the tech front.

The aggressive, two-pronged plan will also counter President Donald Trump’s trade policies.

The looming threat from tech giants

According to the Financial Times, the rationale for such heavy-handed action was the threat from the growing size and reach of tech giants. These threats included U.S. firms like Google, Apple, Facebook, and Amazon, and Chinese ones like Baidu, Alibaba, and Tencent.

“Europe has no such companies,” the document read according to the FT. “This presents a risk to growth, jobs, and to Europe’s influence in key strategic sectors.”

Goals of the European Future Fund

The 173-page blueprint also seeks to impose unilateral tariffs on the United States, in response to Trump’s trade wars.

Taking objection to government subsidies to Chinese companies, which give them an unfair competitive edge, the plan suggests blocking them from participating in tenders in Europe.

The European Commission officials are suggesting that president-elect Ursula von der Leyen take the lead on these proposals.