German economy minister wants tougher foreign investment rules

AFP, BERLIN: 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-per cent stake worth around 7.2 billion euros ($8.9 billion) in German car

giant Daimler—making him the group’s largest shareholder.

“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 scrutinise a transaction and possibly prevent it, if the foreign investor seizes a stake worth more than 25 percent 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.

 

German economy minister wants tougher foreign investment rules

AFP, BERLIN: Germanys 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-per cent stake worth around 7.2 billion euros ($8.9 billion) in German car giant Daimlermaking him the groups largest shareholder. 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 scrutinise a transaction and possibly prevent it, if the foreign investor seizes a stake worth more than 25 percent of a companys capital. The fact is, the investors can often exert considerable influence on a business, even with a smaller stake, said Zypries, a Social Democrat. Chinas increasing interest in German companies has sparked unease in Europes biggest economy.