Precautions against state-run investment funds: active industrial policy or new "protective barriers"?

Should the activity of foreign investors, especially that of state-run investment funds, be subject to controls in Germany? Roland Koch, Minister President of Hesse, warns against possibly state-controlled investors or state-initiated funds that are increasingly active in a strategic manner in the interests of their countries in markets they deem interesting. In his opinion, precautions should be taken to prevent a politically motivated influencing of the market. A conceivable measure is a registration obligation for larger transactions. Rainer Brüderle, FDP parliamentary group, regards an official approval obligation in itself as a departure from free trade and stresses that Germany above all benefits from open markets and from foreign capital. Gunter Schall, Federation of German Industry - BDI, argues that to maintain functioning markets, the instruments of anti-monopoly and competition regulations are more suitable than investment restrictions, although exceptions in some cases are justifiable. This is also the view of Justus Haucap, Universität Erlangen-Nürnberg. The best protection against political influence is a functioning competition on the product markets. Anton F: Börner, Federation of German Wholesale and Foreign Trade, calls for an improvement of Germany as an investment location instead of erecting protective barriers against foreign investors. Germany lives from its open borders and its liberal economic system. Mercantilism and protectionism "under the cloak of national interests endanger competitiveness". Claus Matecki, German Federation of Labour - DGB, favour strict registration obligations and a supervisory authority that would monitor investments in strategically relevant sectors. Limiting the need for regulation to state-run investment funds may be "honourable in terms of basic regulatory policies but would not make economic sense".