Berlin tightens checks on foreign investment plans amid China concerns

Germany on Wednesday tightened the rules on foreign investments in some sectors, lowering the threshold at which it can consider blocking such plans. An order introducing the new rules, which partly reflect increasing concerns about Chinese investors, was approved by the Cabinet, AP reports. Authorities will now be able to launch an investigation of whether an investor from outside the EU can go ahead with an investment if the planned stake is 10 percent or higher, rather than 25 percent at present. The change will apply to companies in the defense and telecommunications sectors, as well as electricity, gas and water supplies. Economy Minister Peter Altmaier said such companies “are of paramount importance for our lives,” and “that also goes for the media sector.” The minister noted that “with sensitive infrastructure, we must be able to look closely at who is buying it and what consequences that has.”