Switzerland has proposed a new mechanism for reviewing and approving corporate acquisitions by foreign or foreign government-backed investors . Although no specific country was mentioned, since China National Chemical Corporation acquired the Swiss agricultural chemical group Syngenta for US$43 billion in 2016, there have been increasing calls for restrictions on Chinese investment.
The Swiss Cabinet stated in its principles for the draft legislation that “the main threat may come from investors close to the government. Therefore, acquisitions by foreign governments or government-linked investors in all sectors should be reported and approved.” The Swiss Cabinet has not yet Determine the areas in which foreign private investors need to be approved for acquisitions.
Switzerland, which has a free market economy, has long opposed investment controls, believing that its open policy ensures that Swiss companies have the capital and expertise needed to create prosperity and job opportunities. Potential threats include companies that may not be able to provide indispensable services, the Swiss army's reliance on weapons suppliers, the public's reliance on information technology suppliers, malicious actors obtaining sensitive personal data, or severely distorting competition.
The government stated that Switzerland will still seek to maintain its openness to foreign investment and its attractiveness as a business center, and will ensure that investment controls are consistent with international law.
