EU asked to avoid 'negative signals'

China hopes Germany and the EU will avoid sending confusing and negative signals when introducing new regulations after Germany tightened foreign takeover rules in key sectors, a Foreign Ministry spokesman said on Friday.

Germany's Cabinet agreed on Wednesday to tighten scrutiny on company takeovers in strategic industries by buyers outside the EU, becoming the first European Union country to tighten its rules on foreign corporate takeovers.

The new regulations will allow the German government to block takeovers if there is a risk of critical technology being lost overseas. The rules will take effect shortly with no need for parliamentary approval in a bid to protect critical infrastructure, including power grids and hospitals, Reuters reported.