Switzerland will tighten rules around foreign investment as a shifting geopolitical backdrop pushes countries to take measures to protect domestic companies and industries.
The plans, approved in parliament on Tuesday, are intended to prevent takeovers that would threaten public order or security in Switzerland, according to a notice on the chamber’s website. The Investment Review Act, also known as “Lex China,” aims to make certain deals involving foreign state-controlled companies subject to increased scrutiny and mandatory sign-off, giving the government a power to intervene.