German Official Urges Stricter Laws to Evaluate Chinese Acquisitions of European Companies

By Reuters

BERLINGermany wants to acquire the legal means to take a closer look at bids from Chinese companies to acquire German and European companies in order better to protect technologies, a German official told newspaper Welt am Sonntag.

Matthias Machnig, state secretary in Germany’s economics ministry, said it was urgent that proposed Europe-wide measures to police surging Chinese investment be adopted by the end of this year.

“It is essential that we get a tougher law in the European Union this year to resist takeover fantasies or outflows of technology or know-how,” he said in an interview, excerpts of which were made available on Saturday.

The paper cited a study by the Cologne Institute for Economic Research that showed the volume of known Chinese investments in Germany had risen to 12.1 billion euros ($15.03 billion) in 2017 from around 11 billion euros the year before and just 100 million euros seven years ago.

Concern has been growing across Europe at China’s buying spree on the continent, with investors snapping up often iconic businesses in a way many fear could threaten Europe’s position as a high-value economy.

“With its innovative companies, the EU is attractive for many around the world,” Machnig said. “Takeovers are becoming more frequent, often under market-distorting conditions.”

By Thomas Escritt

Recommended Video:

 
 
 

Ex-FBI Deputy Director Knew About CNN ‘Dossier’ Story in Advance

Ex-FBI Deputy Director Knew About CNN ‘Dossier’ Story in Advance
Former FBI Deputy Director Andrew McCabe knew in advance that CNN was about to publish its story regarding ...
READ MORE >
 

China, US Near Deal on ZTE Reprieve; Beijing Cuts Auto Tariffs

China, US Near Deal on ZTE Reprieve; Beijing Cuts Auto Tariffs
BEIJING—Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms firm ZTE, sources said ...
READ MORE >
 

South Korean Leader Optimistic About Trump’s Meeting With Kim

South Korean Leader Optimistic About Trump’s Meeting With Kim
South Korean President Moon Jae-in met with President Donald Trump at the White House on Tuesday, May 22, ...
READ MORE >
 

Foreign Media Arrive in North Korea To Witness Nuclear Shutdown

Foreign Media Arrive in North Korea To Witness Nuclear Shutdown
BEIJING—About two dozen journalists from Western and Chinese news organizations arrived in North Korea on Tuesday to witness ...
READ MORE >