The Dutch government announced on Thursday (December 19) plans to strengthen investment scrutiny by incorporating technologies such as biotechnology and artificial intelligence (AI) into the investment review law to prevent potential acquisitions that may pose a threat to national security, particularly by countries like China.
According to Reuters, Dutch Minister of Economic Affairs, Dirk Beljaarts, stated in a press release, “In recent years, international security situations have rapidly worsened.”
Beljaarts emphasized the increasing threats faced by the Netherlands, stating that “the Netherlands has become a target of hybrid attacks such as cyber operations, espionage activities, and acts of sabotage. Including these technologies in the scrutiny scope can protect Dutch entrepreneurs, their innovations, and the future of the Dutch economy.”
The new technologies to be included in the legal framework also encompass nanotechnology, sensors and navigation technology, advanced materials, and nuclear technologies used for medical purposes.
The Dutch government plans to incorporate the scrutiny of investments in these technologies into law in the second half of 2025.
The investment review law was first introduced last year, when the Netherlands, under pressure from the United States, placed new restrictions on Dutch semiconductor technology exports to China.
Under the investment review law, any transactions involving the acquisition of significant Dutch infrastructure, real estate, or technology must be reported to the Investment Review Office, and the transactions must be suspended for 8 weeks to 6 months for the office to conduct a review to ensure that national security risks are thoroughly assessed.
Last year, the Dutch intelligence agency AIVD released an annual assessment of threats such as corporate espionage and covert investments, identifying China as the biggest threat to the economic security of the Netherlands.
The report highlighted that while the Netherlands views China as a major trade partner, the military ambitions of the Chinese Communist Party lead to efforts to acquire Dutch and Western technologies.