BERLIN: Germany agreed new rules on Wednesday to lower the threshold for screening and even blocking purchases of stakes in German firms by non-Europeans, in a move to fend off unwanted takeovers by Chinese investors in strategic areas.
The decision by Angela Merkel’s cabinet is a response to mounting concern that China’s state-backed companies are gaining too much access to key technologies in Europe’s biggest economy while Beijing shields its own companies.
Under the new rules, which come into effect immediately, Berlin can intervene on grounds of public interest if a non-European investor buys a 10 percent stake in a company, sharply reducing the threshold from 25 percent.
“Companies like investing in Germany and it should stay that way. But we must be able to look carefully at who is buying sensitive infrastructure and what consequences that has,” said Economy Minister Peter Altmaier.
Germany introduced the 25 percent threshold in 2004 and expanded its veto powers in 2017. The measures are meant to protect vital infrastructure such as energy, water, food supply, telecommunications, defense, finance and transportation. The rules passed on Wednesday added media companies.
Highlighting fears that Germany is also a target for cyberattacks, the Office for Information Security has warned several German firms of increased Chinese activity, a newspaper reported earlier.
Some business organizations criticized the move.
“Germany must remain open to foreign investors,” said the BDI industry association while the DIHK Chambers of Commerce said the new threshold sent a negative signal to foreign partners.
“It is important to keep a balance ... and to use the instruments only after careful consideration,” said Joachim Pfeiffer, spokesman for economic affairs in Merkel’s conservative bloc, adding: “Sealing ourselves off is not the answer, it leads to a spiral of protectionism.”
So far, Germany has never blocked a stake purchase by a non-European company based on the shareholding threshold rules.
However, China’s Yantai Taihai dropped an attempted purchase of Germany’s Leifeld, a maker of tools for the nuclear power sector, after Berlin signalled in August that it would veto it.
In July, a German state bank took a stake in high-voltage grid operator 50Hertz to stop China’s State Grid buying it after it found no alternative private investor in Europe.
A Chinese Foreign Ministry spokeswoman said the new rules mentioned no specific country and that while ties were good, Germany and China shared responsibility to protect free trade.
“We hope Germany can create a fair, open market access environment and stable institutional framework for foreign companies, including Chinese ones, investing in Germany,” she said.
Among prominent investments in Germany are the 2016 purchase of German robotics maker Kuka by China’s Midea and Geely’s surprise purchase of almost 10 percent in Daimler in February.
European Union states agreed earlier this month to a far-reaching system to coordinate scrutiny of foreign investments in Europe, notably from China.BERLIN
With eye on China, Germany tightens foreign investment rules
With eye on China, Germany tightens foreign investment rules
- Germany agreed new rules on Wednesday to lower the threshold for screening and even blocking purchases of stakes in German firms by non-Europeans
- The decision by Angela Merkel’s cabinet is a response to mounting concern that China’s state-backed companies are gaining too much access
Cruise Saudi strengthens global ties as Celestyal makes maiden calls to Jeddah
JEDDAH: Saudi Arabia is accelerating its push to become a global cruise hub, with Cruise Saudi — a wholly owned Public Investment Fund subsidiary — expanding international partnerships to draw more travelers to the Kingdom’s Red Sea and Arabian Gulf ports.
The latest milestone came as award-winning Greek cruise line Celestyal completed its first-ever calls to Jeddah, signaling rising global interest in Saudi Arabia’s cultural and natural attractions.
The visits form part of Cruise Saudi’s strategy to build a year-round cruise ecosystem that supports tourism growth, boosts local supply chains, and contributes to the Kingdom’s broader economic diversification.
Three UNESCO World Heritage Sites — AlUla, Jeddah Historic District, and Al-Ahsa Oasis — are now accessible by sea, with curated shore excursions designed to deepen visitor engagement.
Cruise Saudi aims to welcome 1.3 million cruise passengers annually by 2035, creating 50,000 direct and indirect jobs and positioning the Kingdom as a premier international cruise destination.
The 1,360-passenger Celestyal Discovery arrived in Jeddah on Dec. 5, following the 1,260-passenger Celestyal Journey, which made its maiden call on Nov. 29. The Journey concluded a seven-night Athens–Jeddah itinerary with stops in Turkiye and Egypt, marked by a traditional plaque exchange ceremony attended by Cruise Saudi executives, port officials and Celestyal representatives.
Passengers were welcomed with traditional Saudi hospitality and toured Jeddah’s historic Al-Balad district, bustling souks, and cultural sites. Some Muslim travelers also visited Makkah to perform Umrah.
“We are honored to celebrate our maiden call in Jeddah alongside our partners at Cruise Saudi, marking the beginning of a long and effective relationship,” said Lee Haslett, chief commercial officer at Celestyal.
He added that Jeddah’s role as “the cultural heart of Saudi Arabia” presents strong potential for cruise tourism.
Barbara Buczek, chief destination experiences officer at Cruise Saudi, told Arab News: “This maiden Red Sea sailing highlights the strong appeal of the region and aligns with Cruise Saudi's commitment to developing seamless, high-quality cruise experiences in Saudi Arabia.”
She noted that Celestyal’s expanded itineraries reflect rising demand for distinctive Red Sea and Arabian Gulf voyages.
Since its launch in 2021, Cruise Saudi has activated five cruise ports, introduced Aroya Cruises, the Kingdom’s first homegrown cruise line, and established Aman at Sea, an ultra-luxury JV with Aman Group set to launch in 2027. The company manages the full value chain — from terminals and berths to curated excursions — and has already welcomed more than 600,000 passengers of over 120 nationalities.
Celestyal, which carries more than 140,000 passengers annually across two refurbished vessels, is aligning with the Kingdom’s Vision 2030 ambition to transform coastal tourism. After departing Jeddah, both Celestyal ships continued to Abu Dhabi to begin the company’s second Arabian Gulf season.
Aroya Cruises has also launched a new seasonal program featuring stops in Mykonos, Athens, Crete, and coastal cities in Turkiye, expanding on a successful inaugural season that attracted over 95,000 guests.
The growing activity underscores Saudi Arabia’s emergence as a world-class cruise destination, supported by modern infrastructure, expanding routes, and experiences that highlight the Kingdom’s culture, heritage and hospitality.
