German minister proposes tougher rules on Chinese foreign direct investment

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Deputy chancellor urges stricter controls on overseas groups’ operations in critical sectors such as semiconductors and AI

email rounding up the latestGermany’s deputy chancellor has set out proposals to increase scrutiny of Chinese investments as Europe’s largest economy grapples with increased geopolitical risks surrounding its biggest trading partner.

China has been criticised by western allies for its growing authoritarianism, sabre-rattling towards Taiwan and continued close ties with Russia despite the latter’sThe proposed legislation is being circulated across government departments for consultation and follows the publication last month of Berlin’s long-awaited China strategy, which said that the government was assessing the effectiveness of existing investment screening as part of a broaderGermany’s three ruling parties are already at...

The new measures do not focus on outbound investment in China’s technology industries, which was recently subjected to. Germany is part of EU discussions about how to respond to those measures.

 

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