onsdag 21. oktober 2020

As Chinese investment into Ireland surges, Dublin tightens the rulebook

Ireland’s foreign investment rules are being updated as Dublin seeks to protect the country’s prized assets and align itself with regulations from Brussels.

Ireland’s industrial policy relies heavily on outside investment with several tech and pharmaceutical giants having headquarters in the country, attracted by the country’s 12.5% corporate tax rate and other factors.In September, the Irish government said it would legislate for the screening of foreign direct investment, giving effect to a European Union regulation that establishes a framework for vetting and evaluating investments into the EU by third-country companies.

The EU wants to ensure greater controls over investments by outside players that may be heavily state-subsidized with an unfair competitive advantage. Chinese companies have invested heavily in Ireland in recent years and while China has been often cited as a cause for concern internationally, the rules do not single out any particular country. Leo Varadkar, Ireland’s minister for enterprise, trade and employment, said that FDI remains a key part of the country’s economic strategy but it needs to protect against “strategic assets falling into the hands of unfriendly foreign governments.”