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DEBATE. At Expressen we were able to read on Monday how Chinese owners have acquired several Swedish companies. Acquisitions of Chinese companies in Sweden have increased considerably since 2014. 51 Swedish companies, which are at the forefront in their areas, have now acquired a majority Chinese stake. In addition to these, there are 14 other companies in which Chinese stakeholders own a significant minority.
Basically, there is no general problem with foreign or Chinese investors or owners of Swedish companies. We live in a global world where increased international trade and international exchange is a strength for Sweden; for employment and the economy.
Don’t be naive
But there can be risks with international acquisitions. The Chinese state is not just any investor. Since the introduction of the new Chinese Intelligence Law in 2017, all Chinese citizens, organizations and companies inside and outside of China must cooperate with the Chinese government and provide support for its intelligence work.
The government has done too little and realized too late the far-reaching security policy implications of China’s actions for Sweden.
Therefore, country investments can be a serious problem if we in Sweden are naïve, we have not done a sufficiently in-depth analysis of the acquisition or if the buyers through the acquisition gain access to important data about people or significant infrastructure.
However, when most of the companies that China is strategically targeting are active in the telecommunications network and infrastructure, it is downright dangerous. Businesses are socially critical and security breaches or tampering can have very serious consequences.
Communist China is a security threat
We must dare to speak clearly, Communist China is one of the most serious security threats against Sweden and Europe today. China is curbing the spread of the coronavirus, jailing democracy fighters in Hong Kong, locking up writers like Gui Minhai and establishing detention camps, or rather torture camps, for Muslim Uighurs. This is just a sample of the abuses that continue to be committed on a daily basis.
It is simply a hole in the head that the Swedish government does not take the issue of Chinese investment more seriously. The Swedish government has done too little and realized too late the far-reaching security policy implications of China’s actions for Sweden. You just had too blue eyes.
Vulnerable companies during the pandemic
This troubling development also runs the risk of becoming even more apparent during the ongoing pandemic. Many companies have financial concerns and companies that bleed resources are easier to buy in a country like China, with strategic ambitions.
Now we must accelerate the work of introducing a Swedish system to review foreign investments that may pose potential security threats. Only then will we be able to coordinate with the rest of the EU, which has started to work to enable audits of foreign investment in European companies in order to be able to stop acquisitions in some cases if they violate security policy interests. Only then will we be able to counter Chinese-influenced operations and strategic acquisitions of Swedish and European companies.
act now
China’s investments in business and infrastructure in Sweden are one of the biggest security policy risks out there, which the government must take seriously. That we sit quietly and watch when the Chinese state acquires strategically important companies is not an option.
By Fredrick Federley (C)
MEP and member of the European Parliament delegation in China
