(Bloomberg) — Germany is considering scaling back plans to ramp up government screening of Chinese investments, the Wall Street Journal reported.
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A decision to ease back from a planned foreign investment-screening law had become likelier due to fears that scrutiny on Chinese investments could hurt Berlin’s efforts to revitalize Germany’s economy, the report said, citing unidentified people familiar with the plan.
The plan for the bill, described in an economics ministry paper seen by the WSJ, proposed giving the government powers to screen foreign investments for security risks. The bill would allow the government to review new types of greenfield investments, including quantum technology, sophisticated semiconductors, artificial intelligence and critical infrastructure, the WSJ reported, citing the ministry’s paper.
The government also sought to include a provision allowing the screening of cooperation projects between German research institutions and foreign partners in critical areas.
No final decision on the plan has been made, but “both ideas will likely be dropped,” the report said.
A German government spokesman declined to comment to the WSJ on the deliberations but said “investment screening is designed to avoid risks to security and public order in Germany. At the same time, it is important to remain open to foreign investments.”
Read more: Germany Arrests Three Suspected of Spying for Chinese State (1)
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