Germany considers reducing scrutiny of Chinese investments: WSJ

(Bloomberg) — Germany is considering scaling back plans to increase government screening of Chinese investments, the Wall Street Journal reported.

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The decision to relax a planned foreign investment screening law was made more likely by fears that scrutiny of Chinese investments could undermine Berlin’s efforts to revitalize the German economy, the report said, citing unidentified people familiar with the matter. flat.

The plan for the bill, outlined in a Ministry of Economy document seen by the WSJ, proposed giving the government powers to screen foreign investments for security risks. The bill would allow the government to review new types of greenfield investments, including quantum technology, sophisticated semiconductors, artificial intelligence and critical infrastructure, the WSJ reported, citing the ministry document.

The government also sought to include a provision that would allow screening of cooperation projects between German research institutions and foreign partners in critical areas.

No final decision on the plan has been made, but “both ideas will likely be abandoned,” the report said.

A German government spokesperson declined to comment on the deliberations to the WSJ, but said that “the analysis of investments aims to avoid risks to security and public order in Germany. At the same time, it is important to remain open to foreign investment.”

Read more: Germany arrests three suspected spies for the Chinese state (1)

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