BRUSSELS, Nov. 20 (Xinhua) -- The European Union (EU)'s reported plan to require Chinese companies to transfer technology in exchange for subsidies underscores China's growing technological strength, a Hungarian expert said on Wednesday.

"The EU is in the midst of an industrial and technological decline, and the simple fact of urging Chinese companies to transfer their technology is nothing but a proof and a self-declaration of China's technological prowess," said Zoltan Kiszelly, director of the Center of Political Analyses at Hungary's Szazadveg Institute, in an interview with Xinhua.

Kiszelly's comments follow a report in the Financial Times on Tuesday, citing two senior EU officials, which said that Brussels intends to require Chinese companies to establish factories in Europe and share technological know-how in exchange for subsidies. The new criteria are expected to apply to 1 billion euros (about 1.05 billion U.S. dollars) in grants for battery development, set to open for bids in December.

The pilot program could later expand to other EU subsidy schemes, the officials said.

When approached by Xinhua, the European Commission declined to comment on the report, citing its anonymous sources. A Commission spokesperson said that EU policies are compliant with WTO rules in all aspects.

Kiszelly criticized the EU's approach, arguing that it contradicts the bloc's long-claimed commitment to fair trade principles. "The transfer of know-how should remain a business-based decision rather than an obligatory act," he stressed. Enditem

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