In recent years, companies from emerging economies have increasingly been investing abroad, in some cases for reasons of industrial policy. Such direct investment in Switzerland has led to fears that this may result in a loss of jobs and expertise, and that public order or security may be put at risk. The Swiss Government has closely considered these potential risks in its report “Cross-border Investments and Investment Controls” of February 2019.
With the adoption of motion 18.3021 Rieder "Protection of the Swiss economy through investment controls" in March 2020, the Swiss Parliament instructed the Government to create a legal basis for controlling foreign investments. The Federal Council adopted the dispatch on the Investment Screening Act on 15 December 2023. Investment screening will focus on state-controlled investors and domestic companies operating in particularly critical sectors.
