Expands the scope of foreign investment screening
18 Jul 2017
On 18 July 2017, an amendment to the Foreign Trade and Payments Ordinance entered into effect.
The changes substantiate the scope of the cross-sectoral review mechanism, referring to foreign direct investment that may threaten public order or security. The amendments describe the increasing importance and vulnerability of key infrastructure and specify that threats to public order or security may arise from foreign ownership in companies that host critical infrastructure, produce industry-specific software for it, work with surveillance mechanisms, cloud-computing-services or telematic infrastructure.
The scope of the sector-specific review mechanism now covers some additional defence-related industries, such as sensor and electronic warfare technologies. Finally, the rules of administration of the review procedures have been adjusted with a view to the growing number and complexity of acquisitions.
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Type:
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Entry and establishment (Approval and admission)
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Industry:
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Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c.)
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Services (Computer programming, consultancy and related activities)
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Sources:
