SEOUL, South Korea, Oct. 24, 2016 /PRNewswire/ -- The publication, Welt am Sonntag, revealed that an email had been sent to German politicians by Deputy Economy Minister Matthias Machnig in which he detailed key points regarding outside investment into the euro zone.
Machnig sees a future where administrations and finance ministries at a national level within the European Union have the power to limit and regulate capital inflow, mergers and other investments from countries within competing financial blocs.
Protectionism is a highlighted issue at the moment after several state-owned or partly state-owned Chinese companies made approaches to high profile German tech firms in recent times. Last year, Chinese conglomerate Midea purchased German automated factory machine maker Kuka in a deal that only just made it through a regulatory commission.
Many German politicians feel the floodgates are likely to open and the country will lose some of its best assets if nothing is done to curb buyouts in the near future.
"It's a touchy issue and there are ministers on both side of the fence," said Charles Sutton, Director of Investment Management Division at CTI China Renaissance in a note to investors. "It's useful for an economy to have this kind of interest from abroad because it puts cash into the system and creates jobs. But many are worried the government is selling out and German companies will lose control over their best products and innovations."
CTI China Renaissance
PRLog ID: www.prlog.org/12596422
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SOURCE CTI China Renaissance