Parliament Greenlights Scrutiny of Foreign Investments, with an Eye on China

Following concerns over takeovers of strategic assets, the Swiss parliament has agreed on a new legal framework to control foreign investments, particularly from state-owned entities, to protect public order and security.

Key Takeaways

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Both the Swiss House of Representatives and the Senate have agreed on the final wording of the Investment Control Act.
The legislation was initiated in 2020 following a parliamentary mandate.
The law specifically targets foreign takeovers that jeopardize public order or security.
The takeover of Syngenta by the state-owned ChemChina was a primary trigger for this legislation.