Germany plans more leash for Chinese investment

Germany is taking steps to enhance its safeguards against Chinese influence within Europe’s largest economy through the implementation of new legislation. This initiative aims to extend the scope of foreign investment scrutiny, as reported by Handelsblatt.

The proposed measures, championed by Economy Minister Robert Habeck, intend to broaden the circumstances under which the government can prohibit non-European Union investors from participating in German companies. A government document cited by the newspaper outlines the expansion of definitions for critical sectors, including artificial intelligence, cloud computing, cybersecurity, and raw materials, under the investment screening act. Furthermore, the ownership thresholds, which determine when government intervention can occur, may be lowered.

This move reflects Germany’s commitment to strengthening its oversight mechanisms concerning foreign investments, particularly from non-European Union sources, in order to safeguard its economy and national interests.