Sweden propose law to block foreign investments

The Swedish government is set to propose a law that will allow the Nordic nation to veto foreign investments. The move is intended to strengthen national security.

The proposed law is the latest in a string of similar initiatives in Europe. Several European countries are rethinking their relations with China. The European Union has also proposed placing Chinese companies under trade restrictions.

An investigation by public broadcaster SVT showed, that about 1,500 Swedish companies have Chinese owners. Ranging from small IT firms to big international companies like Volvo Car.

Sweden remains one of only nine countries in the European Union that have no legal option to block foreign investments on security grounds.

The Confederation of Swedish Enterprise warns that the proposed law may heightened security in international trade relations, but could also come with economic risks. It fears a requirement for prior notification could hamper companies and Sweden as an investment destination.

The new bill is due to enter into force in December if approved.

Source: scmp.com

About Miabell Mallikka

Miabell Mallikka is a journalist working with ScandAsia at the headquarters in Bangkok.

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