Switzerland edges closer to stricter screening of foreign investments

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Switzerland edges closer to stricter screening of foreign investments

National Council wants to examine foreign investments more closely in future

National Council wants to examine foreign investments more closely in futureÂKeystone-SDA

Foreign investors are set to face greater scrutiny in Switzerland as one parliamentary chamber passed the so-called Lex China bill on screening takeovers by overseas buyers.

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On Tuesday, the House of Representatives approved the bill with 143 votes in favor, 46 against and two abstentions. The controversial issue is how far the new provisions in the Investment Control Act should go.

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Lawmakers adopted Lex China following the advice of its Economic Affairs Committee. Parliament had initiated the bill with the referral of a motion by Centre Party Senator Beat Rieder.

Commission spokesperson Jacqueline Badran noted on behalf of the majority that 80 to 90% of OECD countries have been implementing investment controls for some time. Switzerland, with the highest direct investment per capita, must now follow suit.

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Fundamental concerns were expressed by the Radical Party, part of the Swiss People’s Party parliamentary group and the Federal Council.

The opponents doubted the benefits of an investment screening law. On the contrary, the instrument would endanger prosperity and increase bureaucracy.

Translated from German by DeepL/mga

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