Over the summer, French private investors Ardian announced it would sell 24.9% of its shares in Encevo to state-owned China Southern Power Grid International, triggering fears the Chinese state would control the Luxembourg energy market.

“The risks implied by some that Chinese actors could directly or indirectly control Encevo to the detriment of Luxembourg’s economic development is pure speculation and does not exist,” Etienne Schneider (LSAP) said responding to a parliamentary question. “The Luxembourg State, the City of Luxembourg, the SNCI, BCEE and Post hold 74.6% of shares, enough to manage the company’s strategy in the interests of developing the company to benefit the country’s economy.”

Schneider further explained that the shareholder agreement China Southern Grid was in the process of signing, includes a clause enabling the State to buy back shares in Creos and therefore the electricity network at market price, without having to give any reason. “The risk of a takeover of the electricity network by a foreign company is therefore zero,” Schneider said. The minister was responding to a question from MP Gérard Anzia (déi Gréng) who suggested the Chinese State had “systematically penetrated the European energy market” and recently attempted to buy shares in 50Hertz, prompting the German energy minister to buy the shares.