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11:25 PM
Germany toughens criteria for overseas procurement amid the desire of China to process transactions

Germany toughens criteria for overseas procurement amid the desire of China to process transactions

Germany is tightening the criteria to make it more difficult for non-European firms to acquire shares in German companies without encouraging them, signaling an increasing concern in Berlin on the pretext of China's attraction to buy the main technologies and know-how.

Brutal intentions of China for the purchase of assets around the world has forced several States to take steps to screening of investments, repeatedly zablocie them. Not so long ago, European Unity agreed to make a joint framework for concluding this difficulty. In the USA, the Congress took measures to strengthen procedures for testing transactions related to home-grown technologies.

Not paying attention to it, USA on tasks of the state protection warned Beijing continues to apply technologies of USA on formation of personal economy, actually that increased intensity between 2 States in real time flowed down on trade.

In Germany, the growing concern is forcing the government to tighten the criteria of purchase, put just a year back.

The office of Ministers of Germany wants to approve the criteria of the environment, in which it is told, in fact, that every non-European foreign firm planning to buy more than 10% of the German company involved in the protection, technology or means of global information, will notice that its collusion will be tested by the German authorities, according to the texts of people, their people with intention.

Since 2017, the threshold is 25%, which is used to strategically necessary firms, if investments are placed at risk of public order or security.

Germany directly did not mention China as an object of regulation, but not so long ago it blocked 2 deals of the Asian power plant. In one case, he was obliged to interest the personal municipal Bank, because his share was below the 25% threshold, which would allocate to the government blocking administration.

In July, the German Bank KfW bought 20% of the promotions of the holding company of the German transmission system operator 50Hertz transmission GmbH, in order to fend off the efforts of the state grid company of China. He referred to the "reasons for state protection" for this step.

He also blocked the resale of the machine tool company Leifeld Metal Spinning AG to a Chinese trader, saying that he actually risks " public order and security.”

Other European States have warned Chinese purchases this year. In February, the French government temporarily stopped the resale of Toulouse airport to a Chinese consortium.

Chinese civil servants urged the EU not to discriminate against foreign investments and to observe mass criteria. But EU civil servants talk, in fact that China itself is not able to find a personal personal Bazaar for residents of other countries.

As part of efforts to ease tensions with the US, China is making a fresh program that will give foreign firms a strong access to the Chinese market. However, its scope and effectiveness are still unclear.

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