In recent years more and more investors from Asia have been snapping up German companies. Many of those firms faced bankruptcy. Now jobs have been saved. But foreign investment also has a downside, says DW reporter Lars Halter.
The German government plans to tighten rules on foreign investment in some companies by lowering the threshold at which it can consider blocking such plans. The move comes amid increasing concern about Chinese investors.
The German government has said it wants to be able to intervene earlier if a non-EU investor acquires 15 percent of a German company. Berlin has been wary of Chinese and US investors moving to take over key tech firms.
Global foreign direct investment (FDI) fell by almost a quarter last year, as returns for investors declined, slowing also growth in production, a United Nations report says. Prospects for a pick-up look muted at best.
Germany is to prevent a Chinese firm acquiring one of its medium-sized companies, a respected business magazine has reported. The veto of the sale of manufacturer Leifeld Metal Spinning follows security concerns.
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