Amongst the pressing topics regarding the Defence Industry and the current challenges it faces is the question how competition policy can contribute to Europe’s security.

The EU is facing increasing pressure from global instability and a weakening rules-based order. The “Industrial Accelerator Act” (IAA), for which the Commission recently unveiled its proposal (the Proposal),  is designed to help navigate these challenges. The Proposal sets the target of raising the share of the manufacturing industry in the EU’s gross domestic product to at least 20 % by 2035. This aim shall be achieved mainly by two mechanisms: a framework for Foreign Direct Investment (FDI) screening in certain sensitive sectors and “Buy European” requirements for public procurement procedures and subsidies on the other hand. While this briefing focuses on the FDI aspects of the Proposal, its “Buy European” elements are discussed separately.

In January of this year, the European Commission implemented economic measures after an anti-dumping investigation against fused alumina imported from China through the Commission Implementing Regulation (EU) 2026/114. This specific anti-dumping procedure includes for the first-time considerations regarding economic security in the anti-dumping investigation and ended up combining anti-dumping duties with tariff rate quotas to balance the diverging interests of producers and users of fused alumina.

On 3 December 2025, the European Commission adopted the RESourceEU Action Plan (COM(2025) 945), a policy package intended accelerate the EU’s Critical Raw Materials (CRM) strategy under the Critical Raw Materials Act (CRMA), in response to growing geopolitical and market risks. The Action Plan marks a shift from medium-term framework objectives to the rapid delivery of operational measures, with particular focus on rare earth permanent magnets, battery raw materials and defence-related raw materials.

Several of the measures announced fall squarely within BLOMSTEIN’s areas of expertise, particularly those addressing economic security, supply chain resilience and the use of trade and funding instruments to counter non-market practices.

Am 8. September 2025 hat die Europäische Kommission eine Delegierte Verordnung verabschiedet, mit der die Kontrollliste für Güter mit doppeltem Verwendungszweck (sogenannte Dual-Use-Güter) in Anhang I der Verordnung (EU) 2021/821 vollständig überarbeitet und neu gefasst wurde. Die Überarbeitung wurde notwendig, um neue sicherheitsrelevante Technologien frühzeitig zu erfassen, ihre Weitergabe zu kontrollieren und die EU-Rechtslage mit internationalen Standards in Einklang zu bringen. Die Maßnahme wurde bereits im Weißbuch zu Exportkontrollen vom 24. Januar 2024 angekündigt und zielt auf eine kohärente, transparente und wirksame Kontrolle innerhalb der EU ab.

Bereits seit Dezember 2020 gilt in China das neue chinesische Exportkontrollgesetz. Dieses wurde zum Dezember 2024 deutlich verschärft. Insbesondere für den Export von Dual-Use-Gütern gelten durch das Inkrafttreten der neuen Verordnung zur Ausfuhrkontrolle von Gütern mit doppeltem Verwendungszweck („Dual-Use-Verordnung-CH“) deutlich höhere Anforderungen. Diese machen sich in der Praxis vermehrt bemerkbar und stellen europäische Unternehmen vor neue Herausforderungen.

Im Folgenden berichten wir von unseren Erfahrungen mit dem neuen chinesischen Exportkontrollrecht, welche wir in verschiedenen Fällen unter Zusammenarbeit mit chinesischen Kollegen gemacht haben. Wir weisen jedoch daraufhin, dass wir nicht zum chinesischen Recht beraten. Unsere Ausführungen können daher nicht als Auslegungshilfe zum chinesischen Recht verstanden werden.

 On August 1, 2025, additional cybersecurity requirements will come into force for a large number of electronic devices under the Radio Equipment Directive (Directive 2014/53/EU; RED). Despite this approaching deadline, many issues are still unclear, in particular the scope of application of the new regulations and the interpretation of the term "internet-connected radio equipment ".

BLOMSTEIN advised US investment firm Summit Partners on German foreign direct investment control aspects relating the sale of its shares in ELATEC to leading security and solutions provider Allegion plc. The transaction is valued at €330 million on a cash-free, debt-free basis, and is expected to close in the third quarter of 2025.

BLOMSTEIN assisted French listed investment company IDI on German foreign direct investment control aspects relating the acquisition of a majority stake in radar technology specialist Intersoft Electronics Group (IE). The transaction was carried out as a secondary leveraged buyout in close partnership with the existing management team.

“We are no longer at peace – we are under daily attack.” – Lieutenant General André Bodemann

Germany is increasingly the target of low-threshold (hybrid) attacks. These range from disinformation and espionage to sabotage. Critical infrastructure is frequently affected – such as energy and water supply, transportation, and information and communication technology. As a result, the resilience of companies, particularly those operating critical infrastructure, is coming into sharper focus in legal regulations. This is reason enough to examine to what extent businesses in Germany are currently and will in the future be held responsible for protecting themselves against such attacks and responding appropriately.