The German government is pushing for stronger veto rights for EU member states when it comes to the sale of high-tech companies to the Far East. After Germany, France and Italy made joint representations to Brussels months ago, Federal Economics Minister Brigitte Zypries is now calling on EU Commission President Jean-Claude Juncker to finally take action.

The numerous company acquisitions by Chinese investors and the associated inflow of capital prove the attractiveness of Europe as a business location and also secure growth, value creation and jobs in Germany. However, Zypries warns in a letter to Juncker, which is available to the German Press Agency, that China is concentrating one-sidedly on "industrial high and key technologies" when it comes to takeovers in Europe and Germany.

At the same time, the Chinese market remains closed to European investors in many areas. "However, open markets must not be a one-way street," emphasizes the SPD politician. The EU states should also be given the opportunity in individual cases to examine and, if necessary, prohibit "non-market-compliant, i.e. in particular state-controlled or subsidized strategic acquisitions by companies" that develop or manufacture key technologies.

Zypries and her counterparts from Paris and Rome had already sent their demands to EU Trade Commissioner Cecilia Malmström in February - with a request for concrete proposals from the Commission. Since then, not much has happened from Berlin's point of view. Zypries emphasizes in the letter, however, that she is grateful that Juncker has now taken up the issue personally. State Secretary for Economic Affairs Matthias Machnig (SPD) told dpa that the aim was not to seal off the German and European economy. "But there must be no state-directed, subsidized sell-off of key technology companies."

According to a study by Ernst & Young, there were 68 takeovers by Chinese buyers in Germany last year. They paid a total of 12.6 billion US dollars for this. That was more takeovers than in the previous ten years combined. The Chinese Midea Group, for example, bought the Augsburg-based robot manufacturer Kuka despite reservations from politicians. In contrast, the Chinese takeover of special machine manufacturer Aixtron fell through because the then US President Barack Obama said no due to security concerns. "The number of takeovers by Chinese companies has already risen significantly in 2017 compared to the previous year," Zypries announced.

The German government recently extended its national veto right against the takeover of strategically important companies by foreign investors. Further arms companies whose products, for example for "electronic warfare and the equipment required to manufacture them, are of increasing importance" are now better protected. The government also holds a protective hand over telecoms providers that offer cloud applications.

The Ministry of Economic Affairs can review a takeover if a foreign interested party based outside the EU buys at least 25% of the voting shares. This applies in particular to strategically important sectors such as telecommunications/IT, defense or electricity and water supply, where security and national interests or supply could be threatened. The ministry looks at around 40 to 50 foreign investments in Germany every year. Business associations had massively criticized the tightening of the Foreign Trade and Payments Act - immediately after the G20 summit in Hamburg, where host Germany advocated free world markets. They said this would deter investors.