FDI screening expanded over high-tech
01 May 2021
On 1 May 2021, the 17th amendment to the Foreign Trade and Payments Ordinance entered into force. The new ordinance reorganizes the list of sectors and activities covered by the FDI review mechanis, which now enumerates 27 sectors. 16 activities are newly added, mostly high technologies, including: high-quality earth remote sensing systems; artificial intelligence; vehicles with automated or autonomous driving or navigation functions; specially designed robots; semiconductors; IT products or components for cybersecurity; space industry; nuclear technology; quantum technology; additive manufacturing; manufacturing of products essential for wireless and wired data network; smart meter gateways; critical raw materials; secret patents. Also subject to review are projects involving agricultural area of more than 10,000 hectares.
In addition, the amendment changes the thresholds triggering investment screening for different types of acquisitions, depending on their sectors. Accordingly, foreign acquisitions of 10% of voting rights in companies in defense, encryption and critical infrastructure require notification (with further thresholds of 20, 25, 40, 50, 75% applicable as well). Furthermore, the thresholds for high tech industries and agriculture was lowered to 20%, with the obligation to notify the Federal Ministry for Economic Affairs and Energy also when 25, 40, 50 and 75% of voting rights are exceeded.
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Type:
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Entry and establishment (Approval and admission)
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Entry and establishment (Approval and admission)
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Industry:
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Primary (Agriculture, forestry and fishing)
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Manufacturing (Manufacture of basic metals, Manufacture of fabricated metal products, except machinery and equipment, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment)
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Services (Telecommunications, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Public administration and defence; compulsory social security)
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