With security checks, the government wants to prevent investors in high-tech companies from gaining access to highly sensitive technology that falls into the hands of China, Russia or Iran, for example. However, Dutch tech companies fear the law will scare off financiers. This sector demands flexible applications for young technologies such as photonic chips and quantum computers. Dutch intelligence services oppose relaxation.
As early as next year, the ‘investment security test, mergers and acquisitions’ law will come into effect. Under this law, the government then scrutinizes any investors in high-tech companies that buy 10 percent or more shares. Tech companies are asking for leniency on some technologies, so wrote FD.
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long-term
According to FD journalist Jan Fred van Wijnen, the sector itself has no objections to the tests, but the laws are designed in such a way that the tests can take a very long time. And there his shoe wedged; small businesses are usually cashless, in need of capital and therefore in a poor negotiating position with investors.
The pain for tech companies is primarily due to time-consuming scrutiny by investors. The Ministry of Economic Affairs and Climate Affairs (EZK) has set aside eight weeks to find out whether an investor with ties to China, Russia or another country is not permitted to buy the technology.
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Nexeria
Other European countries also value investors in technology companies, but in Germany and France this is only happening at 25 percent interest. The UK will check from 15 percent. “Almost all European countries have such tests, and they are often not childish,” says Wijnen.
Dutch chip company Nexperia was hit hard in England last month, where the British government blocked a takeover of Nexperia chip factory in Wales because the company has all-Chinese owners.
According to sources in The Hague, the Dutch intelligence services are opposed to a flexible approach. It is precisely in this technology that the Chinese government is trying to gain insight into the technology with a small investment. Therefore, the possibility of a less stringent application is very small.
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