German Minister Wants Tougher Foreign Investment Rules
German Minister Wants Tougher Foreign Investment Rules

German Minister Wants Tougher Foreign Investment Rules

German Minister Wants Tougher Foreign Investment Rules

Germany’s economy minister on Saturday suggested tightening the rules on foreign investment, following concern over Chinese influence on European firms.
Last month it emerged that Chinese billionaire Li Shufu had quietly bought a near 10% stake worth around €7.2 billion ($8.9 billion) in German car giant Daimler—making him the group’s largest shareholder, The Local reported.
“We must always adapt our law on the external economy according to new developments, including the threshold at which (the government) can become involved,” Economy Minister Brigitte Zypries told the weekly Der Spiegel.
 Currently, Berlin can scrutinize a transaction and possibly prevent it, if the foreign investor seizes a stake worth more than 25% of a company’s capital. “The fact is, the investors can often exert considerable influence on a business, even with a smaller stake,” said Zypries, a Social Democrat.
 China’s increasing interest in German companies has sparked unease in Europe’s biggest economy.
The distrust is all the greater as EU nations are more open to investment from abroad than Beijing allows on its territory.
 The subject will “have to be on the agenda of the new government, particularly with regard to strategic infrastructures, such as energy, transport or internet sectors”, Zypries said.
German ministers agreed last year to expand government powers to scrutinize takeover bids from abroad, especially in sectors affecting critical infrastructure, and to extend the range of deals eligible for official probes.
The move followed the 2016 Chinese takeover of industrial robotics firm Kuka and US-based Tesla Motors’ buying-up of factory automation specialist Grohmann Engineering.
 That same year also saw Washington block a Chinese acquisition bid for German microchip maker Aixtron, warning its products could have military applications.

Short URL : https://goo.gl/j6AtbX
  1. https://goo.gl/MgPtL6
  • https://goo.gl/NPhrXV
  • https://goo.gl/7inhAV
  • https://goo.gl/g3T93g
  • https://goo.gl/2eN8qs

You can also read ...

US Economy Back on Top of World Competitiveness Ranking
Marking its 30th edition this year, the IMD World...
Some 96% believe that bribery and corruption was an important issue to tackle.
Almost one out of two large global companies experienced some...
China Debt Crackdown Leaves Institutions Short of Cash
China is cutting off funds to financial companies and banks...
Deutsche Bank Will Cut 7,000 Jobs
Deutsche Bank said on Thursday it will reduce global staff...
Taiwan Growth Forecast Upgraded to 2.6%
The directorate general of budget, accounting and statistics...
Turkey Raises Rates Sharply to Prop Up Lira
Turkish President Recep Tayyip Erdogan is facing a potentially...
Two Oman Banks Discuss Merger
Oman Arab Bank has initiated merger talks with fellow Muscat-...
MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat.
Market sentiment was a little shaky on Friday with Asian...

Add new comment

Read our comment policy before posting your viewpoints