Minister warns of ‘strategic’ Chinese takeovers of Swiss firms
Agribusiness giant Syngenta is one of many Swiss companies that have been acquired by Chinese firms in the last few years.
Keystone
Swiss Communications Minister Doris Leuthard has expressed concern about potential acquisitions by Chinese firms of 'strategically sensitive' companies in Switzerland. During a visit to technology companies in southern China, she called on the government to reflect on the issue.
“We must do what Germany did many years ago, which is hold a discussion on how to react in the face of Chinese firms’ hunger for takeovers,” declared Leuthard in an interview published on Monday in the Aargauer ZeitungExternal link.
According to Leuthard, Switzerland should insist on reciprocity, which means that takeovers without conditions should only be allowed if conversely, 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 argues.
In case of companies that are strategically important to Switzerland, she believes the majority ownership should stay in Swiss hands and the Swiss Competition Commission should evaluate each case.
Risks of spying
With regards to Chinese companies building mobile networks in Europe, the Communications Minister said that she is aware that critics are concerned about risks of spying. “We don’t have anything negative to report,” she affirmed while also clarifying that it isn’t possible to be totally secure in the digital age. Consumers shouldn’t be naive and should take precautions to protect their data.
According to Leuthard, the digital economy in China is very innovative and Beijing invests a lot in research and development. The era where China is considered world champions of counterfeiting is over, she said.
There have been several notable merger and acquisition deals by Chinese firms in Switzerland in the last few years, including the record $43.3 billion (CHF43.06 billion) takeover of agrochemical giant Syngenta by the China National Chemical Corporation (ChemChina) in 2016.
Popular Stories
More
Swiss Abroad
The citizenship obstacle course facing spouses of Swiss Abroad
Swiss committee wants to end government resignations during legislative term
This content was published on
Members of the Federal Council should no longer be able to leave office before the end of their term, according to a House of Representatives committee.
Swiss government seat: Ritter and Pfister nominated to succeed Amherd
This content was published on
Markus Ritter from St Gallen and Martin Pfister from Zug were officially nominated by the Centre Party on Friday to succeed Defence Minister Viola Amherd.
Top Swiss court rejects Russian request for administrative tax assistance
This content was published on
There is currently no reason to transmit banking information to the Russian Federation, the Swiss Federal Court has ruled.
After strike by radiologists, doctors demonstrate in Bern
This content was published on
Following a strike by radiology technicians in Fribourg, doctors, vets, dentists and chiropractors expressed their frustration on Friday outside parliament in the Swiss capital.
Eurovision and bleak world situation are top themes at Basel carnival
This content was published on
The Eurovision Song Contest and the gloomy global situation are among the main themes of Basel Fasnacht (carnival) this year.
Prices of Swiss investment properties continue to rise despite stagnating rents
This content was published on
Although rents in Switzerland stagnated or fell in the final quarter of last year, prices for investment properties continued to rise. Both apartment buildings and office properties have become more expensive.
Probe into wrong Swiss pension figures clears federal office
This content was published on
Employees of the Swiss Federal Social Insurance Office (FSIO) did not breach their duty of care when calculating pension prospects, an investigation has concluded.
This content was published on
Hotels in the southern Swiss canton of Ticino welcomed significantly more guests last December than in the same month of the previous year.
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.
Read more
More
Chinese firms paint Switzerland red
This content was published on
Switzerland can expect to see a lot more firms coming over from China in the coming years, Dr Liu Jiren, co-founder and chairman of leading Chinese software firm Neusoft, told swissinfo.ch at the World Economic Forum in Davos. Neusoft set up its European HQ in Appenzell in 2009, from where it now runs operations in…
Swiss sign agreement to build China’s first zero-energy building
This content was published on
The project called “Swiss House Sunlon” is backed by Swiss companies and will be the first zero energy dwelling in China. The technology used in the building will come from the Swiss cleantech sector and is meant to serve as a showcase for Swiss innovation in the country. The agreement was signed on Thursday in…
This content was published on
Syngenta’s board voted unanimously to accept the offer, which will be finalised by the end of 2016. SyngentaExternal link said on Wednesday the move would allow it to make long-term investments in innovation. Syngenta’s current management will continue to lead the company. After the transaction is finalised, a board of directors composed of six members…
This content was published on
Last year, Switzerland saw its highest volume of mergers and acquisitions since 2007, with investments by Chinese companies playing a leading role.
Hurdles to merging ‘Swiss Made’ with ‘Made in China’
This content was published on
With Europe an increasingly attractive target for Chinese investment, some 70 Swiss brands have been subject to Chinese mergers and acquisitions.
This content was published on
Swiss companies exported machinery product in the value of CHF1.45 billion ($1.46 billion) to China and Hong Kong in the first six months of 2018.
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.