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

The move reflects pressure across Europe to limit takeovers by Chinese state-backed groups of prized European assets.

"We are concerned about the relevant moves of Germany and Europe," Chinese Foreign Ministry spokesman Geng Shuang told a daily news briefing.

China's trade and business links with Germany and the European Union have brought real benefits to the peoples and companies of both sides and promoted economic growth, he added.

China hopes that Germany and the EU can avoided being affected by protectionist tendencies, and not send a "confused, negative" message to the rest of the world, Geng said.

The purchase last year of German robotics maker Kuka (>> Kuka) by Chinese company Midea (>> Midea Group Co Ltd) raised concern that China was gaining too much access to key technologies while shielding its own companies from foreign takeovers.

State-owned ChemChina's $43 billion (33.16 billion pounds) purchase of Swiss pesticides and seeds group Syngenta, China's biggest overseas acquisition to date, has increased pressure in Europe to curb foreign takeovers in strategically important sectors.

(Reporting by Ben Blanchard; Editing by Robert Birsel)

Stocks treated in this article : Kuka, Midea Group Co Ltd