Ger­man poli­cies hit ties, say ex­perts

China Daily (USA) - - BUSINESS - By ZHOUWA in Bei­jing and YU RAN in Shang­hai

The un­pre­dictabil­ity and un­cer­tainty of Ger­man poli­cies will in­flu­ence the in­vest­ment en­vi­ron­ment in Ger­many and trig­ger loss of in­vestors, of­fi­cials and in­dus­try ex­perts warned.

The Ger­man Fed­eral Min­istry for Eco­nomic Af­fairs and En­ergy re­cently with­drew its ap­proval of a Chi­nese com­pany’s takeover of Ger­man chip equip­ment maker Aix­tron SE. It said it would re­view the deal, which was ap­proved in Septem­ber.

The min­istry’s move will throwupob­sta­cles for the 670mil­lion-euro ($743 mil­lion) deal from Fu­jian Grand Chip In­vest­ment Fund LP and wield a neg­a­tive in­flu­ence over the cred­i­bil­ity of the Ger­man govern­ment, said Duan Wei, gen­eral man­ager of the Chi­nese Cham­ber of Com­merce in Ger­many.

“We are con­cerned about the Ger­man govern­ment’s po­lit­i­cal in­ter­ven­tion in the nor­mal in­vest­ment op­er­a­tion from a Chi­nese com­pany and can­not un­der­stand its con­tra­dic­tory move in such a short time,’’ Duan said.

It is not con­vinc­ing to set bar­ri­ers, when you your­self rely on the open mar­kets of other coun­tries ... ” DIHK pres­i­dent

Eric Sch­weiter,

“The un­pre­dictabil­ity and un­cer­tainty of poli­cies will in­flu­ence the in­vest­ment en­vi­ron­ment in Ger­many and trig­ger loss of in­vestors. We ex­pect Ger­man au­thor­i­ties to con­trib­ute more to trade lib­er­al­iza­tion and fa­cil­i­ta­tion,” he added.

The Chi­nese Min­istry of Com­merce hopes the Ger­man govern­ment’s re­cent in­ves­ti­ga­tion is “an ex­cep­tion” and doesn’t rep­re­sent a pol­icy against Chi­nese busi­nesses, the min­istry’s spokesman Shen Danyang said on Nov 2.

Shen said even though Chi­nese in­vest­ment in Ger­many has grown rapidly in re­cent years, the to­tal vol­ume is still rel­a­tively small, and so it’s un­nec­es­sary for Ger­man of­fi­cials to worry that Ger­man tech­nol­ogy and jobs will be lost as a re­sult of Chi­nese in­vest­ment.

The Fed­er­a­tion of Ger­man In­dus­tries (BDI) and the As­so­ci­a­tion of Ger­man Cham­bers of Com­merce and In­dus­try (DIHK) also warned against ob­sta­cles erected by the min­istry.

“I think that is not the right way. Ger­many, par­tic­u­larly, re­lies on ex­ports as well as open mar­kets in other coun­tries. It is not con­vinc­ing to set bar­ri­ers, when you your­self rely on the open mar­kets of other coun­tries at the same time,” DIHK Pres­i­dent Eric

Sch­weitzer told Ger­man tele­vi­sion ARD.

“Ger­man en­ter­prises have in­vested more than 60 bil­lion euro ($66.54 bil­lion) in China, while only 2 or 3 bil­lion has come in the re­verse di­rec­tion. I think it would be cor­rect when an im­proved bal­ance could be reached here, so that we could stand in a bet­ter po­si­tion dur­ing ne­go­ti­a­tions,” he added.

Led by the cen­tral govern­ment’s strat­egy, more Chi­nese com­pa­nies are keen to in­vest and pur­chase over­seas ven-

the to­tal value of last year’s ac­qui­si­tions

tures. Sta­tis­tics from the Min­istry of Com­merce showed that Chi­nese com­pa­nies have com­pleted a to­tal of 521 ac­qui­si­tion projects worth more than $67.4 bil­lion in 67 coun­tries and re­gions cov­er­ing 18 in­dus­tries so far this year.

The amount has al­ready passed last year’s to­tal of $54.4 bil­lion.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.