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German Economy Minister Robert Habeck is seeking to reduce Chinese influence on the German economy by massively expanding regulatory oversight of foreign investment, according to a report in the financial newspaper Handelsblatt.
Habeck has reportedly begun drafting an “Investment Review Act” that would expand oversight power over foreign investments in Germany, according to the report.
A spokeswoman for the Economy Ministry confirmed to dpa on Monday that the outlines of such a law have been coordinated by government ministries.
The spokeswoman suggested that key sources of raw materials would be a focus of the law, as well as questions of security in foreign trade.
She declined to discuss further specifics of the draft, but said it is intended to implement policies outlined in Germany’s China strategy document that was released earlier this summer.
The strategy called for Germany to reduce economic dependencies on China in key areas in order to mitigate risks.
The German government has the authority to block investments in German companies from outside the European Union (EU) if public order or security is threatened.
According to the Handelsblatt report, Habeck is seeking to expand the list of critical sectors for which rules requiring strict oversight of potential investments apply.
Chinese investment in key German companies and infrastructure projects has drawn increased public scrutiny and attention in recent months.
Chancellor Olaf Scholz’s decision earlier this year to approve a Chinese state-owned company’s purchase of a minority share in a container terminal at the Hamburg port was controversial and faced opposition from ministers within Scholz’s government, including from Habeck.
