Germany is making it difficult for non-European companies to buy stakes in German firms without receiving an approval.
The Wall Street Journal, writes: “Germany hasn’t directly mentioned China as the target of the regulations, but it recently blocked two deals by the Asian powerhouse. In one case, it had to involve its state-owned bank since the stake in question was below the 25% threshold that would give the government blocking power.”
The main reason for this push is because there is significant concern in Berlin over China’s aggressive plans to obtain key technology. In fact, China’s strategic activities has encouraged several countries from around the world to take action in terms of intense investment screening, that has resulted in barring them several times.
For example: Germany’s KfW bank obtained a 20% stake in one of the four transmission system operators for electricity in the country—50Hertz Transmission GmbH to disband moves by State Grid Corporation of China. The company it was over “national security grounds” that the Chinese company’s efforts were not carried forward.
The French government blocked a Chinese consortium from taking control of Toulouse airport in February.