Switzerland is moving towards stricter controls on foreign investments, particularly targeting Chinese and Russian investors.

The Swiss National Council has approved a proposal to implement state oversight on foreign takeovers of Swiss companies, a move driven by growing global tensions and national security concerns.

This decision reflects a broader international trend of prioritizing national security over economic openness, influenced by geopolitical tensions, the pandemic, and energy crises.

The proposed law, often referred to as "Lex China," aims to prevent foreign state-backed investors from acquiring strategic Swiss assets and potentially relocating value creation abroad.

The new regulations will apply to all foreign investors, not just state actors, and are expected to significantly increase the number of scrutinized transactions.

Despite opposition from some political factions, the legislation is likely to pass in the Swiss Council of States, aligning Switzerland with similar measures in other OECD countries.