Zhejiang Geely Holding Group, a Chinese carmaker that also owns Volvo, is scheduled to acquire a majority share in Danish the fintech and Reg Tech, Saxo Bank, following its more than $300 million purchase of stake in the Scandinavian company, as reported today by The New York Times. The deal represents Geely’s first sign of investment into financial services.

Back in May, Geely issued a statement that it would “take a 30 percent stake in Saxo Bank as part of a diversification drive,” or rather, to gain access to new technologies.

The move falls in line with a long string of investments on the part of Chinese companies into European and U.S. technology firms, as part of a shift in Beijing’s strategy from encouraging Chinese companies to invest in property to encouraging them to invest in “high and new technologies” and “advanced manufacturing capabilities.”

The fintech sector therefore falls within the line of fire with regard to China’s targeted sectors, and Geely’s purchasing of a majority share in Saxo Bank, therefore, comes as no surprise.
However, this policy shift has inspired apprehension amongst Western political leaders.

Back in September, for example, Donald Trump famously blocked a Chinese investor from acquiring a U.S. semiconductor firm on the grounds of national security. Additionally, President of the European Commission, Jean-Claude Juncker, in a move that many interpreted as a reference to Chinese businesses, echoed this sentiment when he stated that when a foreign firm seeks to acquire a European firm, “this should only happen in transparency, with scrutiny and debate.”

There have been multiple theories as to why Western politicians are sounding the alarm against Chinese investment, including national security. Other possibilities include worries over technology theft and of the loss of competitive advantage.

The European Union is also expected to take additional precautionary measures to limit the scope of potential Chinese investment in European companies. Just last week, it was announced that the EU will soon place additional restrictions on Chinese investments — though, these restrictions are expected to be enacted on a voluntary and non-binding basis.

The Chinese government has spoken out against these restrictions, calling them “protectionist” and misguided in their commitment to pursuing “short-term interest” in lieu of “long-term” benefits.

Last year, Chinese institutions spent more than $40 billion acquiring European companies.

Read more at: Robotics and Automation News, South China Morning Post, and The New York Times.