🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Germany to tighten foreign investment rules for critical sectors

Published 11/28/2019, 11:16 AM
Updated 11/28/2019, 11:21 AM
© Reuters.  Germany to tighten foreign investment rules for critical sectors
KU2G
-

BERLIN (Reuters) - Germany plans to screen non-European investors that want to buy into firms in high-tech sectors such as robotics and artificial intelligence in a move widely seen as targeting Chinese state-backed investors.

The measures, outlined in a document seen by Reuters, are part of a new industrial strategy due to be announced by Economy Minister Peter Altmaier on Friday.

While China is not mentioned in the document, German and European Union officials have repeatedly said they want a fair playing field with China, which they accuse of shielding its own companies from foreign investors.

"The economy ministry has worked out a further amendment to the law under which we will extend the screening possibilities and define a catalogue of critical technologies," the document seen by Reuters said.

"The government must be able to take a closer look, for example, if national security interests are affected by foreign investments," the paper said.

Under the new rules, investors in sectors including artificial intelligence, robotics, semi-conductors, biotechnology and quantum technology would have to make public any purchases of 10% or more and allow Germany to check them.

Previously, only investments in critical infrastructure, such as energy, water, telecommunications and defense could be screened. Last year, the government dropped the investment threshold for those sectors to 10% from 25%.

The German move comes at a time the EU as a whole is reconsidering the bloc's industrial strategy and relations to China in the face of increased investment in critical sectors by Chinese state-owned enterprises.

German officials have described the Chinese takeover in 2016 of Bavarian robotics firm Kuka (DE:KU2G) as a wake-up call that underlined the need to shield strategic parts of the economy.

An attempt by China's State Grid in 2018 to buy a stake in power grid operator 50Hertz also focused German minds. After Berlin failed to find an alternative private investor in Europe, German state-owned bank KfW stepped in to keep the Chinese out.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.