The Government of Denmark has formally passed a new law to allow the screening of foreign investments so that they do not pose any threats to the National Security.

Need of new Law

The law has been legislated to protect the country against China’s Huawei and its objectives to build 5G network in Denamrk. However, the law does not mention China.

Law

Under the new law, the foreign investors in Denmark will be assessed on their potential link to foreign governments and armed forces. They will also be assessed for connection to criminal activities.

The law is not applicable to Greenland and Faroe Islands. They are sovereign territories under the Denmark.

Huawei a threat to National Security

Several countries across the world are making new legislation and other key measures to protect their National security against China’s Huawei. This includes The United States of America, Australia as well. The United Kingdom has ordered to strip Huawei technology from UK by 2027. Both India and Germany too have raised concerns against Huawei.

Huawei Technologies manufactures kits such as gateways, network switches and bridges. They are core infrastructure devices that touch everything traversing the internet. They are critical for proper functioning of the system. This means that the Governments should take extra care in protecting their data.

Huawei Technologies was founded in the year 1987 in China by Ren Zhengfei. He was a former engineer in the PLA (People’s Liberation Army). He has strong connections with the Communist Party of China and also to the military. This is being cited as a security concern. Countries fear that the Chinese Communist Party might use Huawei as a backdoor to breach into the national security system.

Denmark passes law to screen Foreign Investment Denmark passes law to screen Foreign Investment