Germany proposes restrictions on Chinese direct investment in sectors like semiconductors, AI and quantum computing

alemania reichstang

Banca March| German Vice Chancellor Robert Habeck, Germany’s finance minister and a member of the Green party, is proposing restrictions on sectors where Chinese influence could pose a threat to Western economic security. These include semiconductors, artificial intelligence and quantum computing. These measures are framed in a context of debate and criticism of China’s geopolitical situation; authoritarianism in the country, military threats against Taiwan and ties with Russia.

On the other hand, Chancellor Olaf Scholz, a member of the Social Democratic Party, is sceptical of these restrictions and is more concerned about the deterioration of trade relations. In 2022 China was Germany’s largest trading partner for the seventh year in a row. The assessment of investment control lies in a broader assessment of ties.

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