The German government blocked potential Chinese investment in two domestic chipmaking companies over national security concerns and the flow of sensitive technological know-how to Beijing.
What Happened: Germany on Wednesday had vetoed the takeover of the chip factory of Elmos by Chinese group Sai Microelectronics' Swedish subsidiary Silex and also blocked investment in ERS Electronic, reported Reuters.
See Also: Nvidia’s New Chip May Sidestep US Ban On China Exports: What Investors Need To Know
German minister for Economic Affairs, Robert Habeck, accused Xi Jinping of pursuing a strategic approach to increase China’s influence through investments. “We’re seeing a conscious, strategic approach to exerting influence and gaining knowledge.”
"Particularly in the semiconductor sector, it is important for us to protect the technological and economic sovereignty of Germany and Europe. Of course, Germany is and will remain an open investment location, but we are not naive either," Habeck added.
The decision to bar a Chinese investment comes at a time when Germany re-examines ties to its giant trading partner. Last week, German Chancellor Olaf Scholz met Xi on his one-day trip to China. The president told the chancellor that as big nations with influence, they should work together all the more during “times of change and turmoil” for the sake of world peace.
Earlier, Taiwan's premier had called for the swift passage of revisions to laws to prevent China from stealing its semiconductor technology. Taiwan Semiconductor Manufacturing Company Limited TSM, which supplies to giants like Apple Inc AAPL, accounts for 92% of the world’s most advanced semiconductor manufacturing capacity and has what Beijing needs.
Check out more of Benzinga’s Europe and Asia coverage by following this link.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.