Germany Plans to Tighten Rules on Non-EU Takeovers of Hi-Tech Businesses

Against a backdrop of growing alarm about Chinese firms buying up German expertise, Germany’s economy ministry plans to tighten rules on non-EU takeover of domestic hi-tech firms. The ministry said it had drafted an amendment to the Foreign Trade Regulation that would allow the government to review or block foreign purchases of stakes as low as 10% in "critical technology" companies. This would affect firms working in the areas of robotics, artificial intelligence, semi-conductors, biotechnology and quantum technology. This latest move goes further than previous efforts by Berlin to protect strategic firms from foreign acquisitions. Feelings of concern has mounted in recent years, as Chinese companies have bought up or purchased controlling stakes in high-tech firms, airports and harbours in countries all across the EU. This happens after rumours that Trump tried to buy German pharmaceutical company CureVac and thei rights on their potential coronavirus vaccine, which the firm later denied.