With Eye on China, Germany Tightens Foreign Investment Rules

With Eye on China, Germany Tightens Foreign Investment Rules
German Interior Minister Horst Seehofer, Labour Minister Hubertus Heil and Minister for Family, Pensioners and Youth Franziska Giffey attend the weekly cabinet meeting in Berlin, Germany on Dec. 19, 2018. Fabrizio Bensch/Reuters
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BERLIN—Germany agreed new rules on Dec. 19 to lower the threshold for screening and even blocking purchases of stakes in German firms by non-Europeans, in a move to fend off unwanted takeovers by Chinese investors in strategic areas.

The decision by Angela Merkel’s cabinet is a response to mounting concern that China’s state-backed companies are gaining too much access to key technologies in Europe’s biggest economy while Beijing shields its own companies.