The Federal Council (the executive) responded to a request from parliament to look at the risks of such investment to Switzerland and possible measures. It concluded that current laws were sufficient for dealing with any potential threats.
Introducing such controls would currently bring no additional benefits to Switzerland, the government said in a statementExternal link on Wednesday.
“On the contrary, restricting capital flows into Switzerland would increase red tape, generate uncertainty and make Switzerland a less attractive place to invest. However, the Federal Council intends to conduct a monitoring procedure and review the report within the next four years,” it said.
In recent years, Chinese state-run or state-backed companies from emerging economies have increasingly been investing abroad, in some cases for reasons of industrial policy. Such direct investment in Switzerland has led to fears that this may result in a loss of jobs and expertise, and that national security may be put at risk.
Leuthard believed Switzerland should insist on reciprocity, which means that takeovers without conditions should only be allowed if Swiss firms can make acquisitions in China. Currently, Swiss firms are only allowed to have joint ventures with Chinese firms.
“It is important that Swiss and Chinese companies negotiate on equal terms,” she said.
Monitoring procedure
There have been several notable merger and acquisition deals by Chinese firms in Switzerland in the past few years, including the $43.3 billion (CHF43.7 billion) takeover of agrochemical giant Syngenta by the China National Chemical Corporation (ChemChina) in 2016 – the biggest acquisition ever by a Chinese company.
“Current legislation allows the authorities to effectively counter any potential risks,” the government said on Wednesday. “In the field of IT pertaining to critical infrastructure, the Federal Council will also examine what targeted measures are needed to further improve resilience against abusive foreign activities.”
However, the government said it was aware of the possible risks associated with direct investment and intended to conduct a monitoring procedure and review the report over the next four years.
“With an acceptable level of administrative expense, this instrument will show whether there is a need to take appropriate steps in the future. Furthermore, in future the Federal Council will give greater consideration to the question of reciprocity,” it said.
More
More
Why more Chinese companies will come to Switzerland
This content was published on
Switzerland can expect to see a lot more companies coming over from China in the coming years, according to Liu Jiren, CEO of Neusoft.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
This content was published on
In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
This content was published on
As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
This content was published on
After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
Swiss study: insects mainly migrate at midday and dusk
This content was published on
A study led by the Swiss Ornithological Institute in canton Lucerne is helping to better understand the movement patterns of migratory insects.
Red Cross: 22 staff killed in Middle East since October
This content was published on
The Red Cross and Red Crescent network in Gaza and Israel has lost 22 staff members since last October, the Swiss Red Cross (SRC) said on Wednesday.
Dortmund’s Kobel is first Swiss goalie in Champions League final
This content was published on
Borussia Dortmund’s Gregor Kobel has achieved history by becoming the first Swiss goalkeeper to reach a Champion’s League final.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
Sinochem and ChemChina move closer with Syngenta appointment
This content was published on
A Sinochem executive is taking over the China operations of Syngenta, the Swiss subsidiary of rival agribusiness giant ChemChina.
This content was published on
Speaking to Swiss public broadcaster SRF, deputy director of the Swiss Federal Institute of Intellectual PropertyExternal link Felix Addor, said judges in rural areas of China are sometimes loathe to issue unpopular verdicts against local companies. “The involvement of a major Chinese employer can have an inhibiting effect,” Addor told SRFExternal link. “For political reasons,…
As Chinese economy slows, Swiss seek greater access
This content was published on
Presence of China’s vice president at WEF comes at a time of slowing economic growth at home and growing scrutiny of Chinese investments abroad.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.