(MENAFN) According to media sources, Germany is on a mission to defend its indigenous semiconductor sector from takeovers by Chinese companies. According to Politico on Wednesday, the country's Economy Ministry legally forbade a Swedish affiliate of China's Sai Microelectronics from acquiring Dortmund-based chipmaker Elmos for euro85 million.

Robert Habeck, the economics minister, was reported in the source as claiming that “we have prohibited a non-Union investor from entering into business ventures in Germany.” Habeck clarified, “the reason for this is that the security of order in Germany must be protected and critical production areas require special protection.”

Based on the Handelsblatt newspaper, which cited its official sources, the Federal Cabinet also denied Habeck's bid to purchase the Bavarian business ERS Electronic from a Chinese investor.

This week, Reuters reported that the economics ministry and the government were developing a China policy that would lessen reliance on one source of income, promote diversification, safeguard infrastructure, and stop the leakage of technology.

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