BERLIN — The German authorities on Wednesday blocked potential Chinese language funding in two home semiconductor producers after the strikes raised considerations over nationwide safety and the circulate of delicate technological know-how to Beijing.

The federal government mentioned it had vetoed the takeover of the chip manufacturing unit of the Dortmund-based firm Elmos by Silex, a Swedish firm that may be a subsidiary of Chinese language group Sai Microelectronics.

Berlin additionally blocked funding in ERS Digital, which relies in Bavaria, authorities sources advised Reuters.

A spokesperson for ERS Digital mentioned there have been no plans to promote the corporate but it surely had been exploring the choice of getting funding from a Chinese language personal fairness agency.

The choices got here at a time of heightened sensitivity round relations between Berlin and Beijing.

The federal government of Chancellor Olaf Scholz, who visited China final week, is attempting to stability a push for entry to the Chinese language marketplace for European corporations with addressing safety considerations and lowering Germany’s commerce reliance on China.

It has been reviewing its coverage in direction of China particularly within the wake of Russia’s invasion of Ukraine in February, which uncovered Germany’s heavy dependence on Russian gasoline.

“We have now to take a look at firm takeovers intently, in terms of vital infrastructure or when there’s a hazard that expertise flows to consumers from non-EU international locations,” Financial system Minister Robert Habeck mentioned in an announcement.

“Particularly within the semiconductor sector, it is very important us to guard the technological and financial sovereignty of Germany and Europe. After all, Germany is and can stay an open funding location, however we aren’t naive both, ” Habeck mentioned.

Elmos couldn’t be reached for remark. A spokesperson for China’s overseas ministry mentioned Beijing wished a good and open atmosphere for Chinese language funding.

Talking to reporters after the choice, Habeck mentioned China was making a “a deliberate, strategic method to influencing each data discovery and manufacturing management, notably within the space of semiconductor and microchip manufacturing.”

Scholz earlier had pushed via a choice to permit China to purchase a minority stake in a terminal in Germany’s largest port regardless of opposition from inside his coalition.

That call had sparked an offended response by the overseas ministry, which warned that the funding disproportionately expanded China’s strategic affect. China has beforehand dismissed such considerations.

Scholz has warned of any decoupling from China or de-globalization basically, whereas additionally emphasizing the necessity for Germany to diversify its Asia commerce and take strategic considerations extra into consideration in its enterprise dealings.

Whereas saying he was not conscious of the precise Elmos and ERS digital investments, Chinese language overseas ministry spokesperson Zhao Lijian mentioned Beijing had inspired its corporations to hold out win-win funding cooperation abroad.

“All international locations, together with Germany, ought to present a good, open and non-discriminatory market atmosphere for the conventional operation of Chinese language enterprises and chorus from politicising regular financial and commerce cooperation, to not point out protectionism on the grounds of nationwide safety,” Zhao advised an everyday information briefing.