An investigation is currently underway into a Swedish system for examining foreign investments, and the results will be presented at the end of 2021. Today, it is difficult for the government to prevent foreign acquisitions of activities worthy of protection.
These can be companies in energy supply, electronic communications or food supply.
Today, the company itself must warn the authorities about problems with the purchase.
Can be problematic
According to the report from the Swedish Defense Research Agency, investors can be problematic depending on which country they come from.
This could, for example, involve security risks if the investor comes from a closed, undemocratic country that has an “antagonistic” relationship with Sweden, according to the report.
Examples of antagonistic countries are Iran, China and Russia.
An acquisition can, for example, be problematic if it involves an activity that is important for maintaining society's functions, such as food security, or national security, such as selling technology that could be used in weapons systems.
China accounts for a large part
The report states that China accounts for a large part of direct investment in Swedish companies.
There are several reasons why Chinese owners of Swedish operations may pose risks to Sweden.
This applies both to Sweden's economic security and military security interests.
China has used economic interests politically and can monopolize markets with the help of its strong position in various markets.
A company can be worthy of protection from a military perspective if they develop advanced technology that could also be used in weapons platforms.
There are examples of this when it comes to acquisitions in recent years.
Becoming self-sufficient in high technology is crucial to China's military capability, and company acquisitions are one of the methods used by Chinese players to transfer technology to China.