Germany gets tough on Chinese takeovers
Alarmed by a raft of Chinese takeovers, Germany is putting the brakes on the Asian giant’s shopping spree as it sends out the message that not everything is for sale-at the risk of antagonizing Beijing. The more assertive noises coming out of Berlin are likely to dominate Economy Minister Sigmar Gabriel’s trip to China in the coming days, putting to the test the oft-vaunted “special relationship” between the top export powers. Germans have watched with unease as Chinese enterprises have swallowed up a record number of homegrown tech companies this year, sparking fears of German knowhow and intellectual property being sold off to the highest bidder.
The wave of acquisitions has also stoked grumbles over China’s easy access to the country’s open markets, often through state-backed companies, while foreign investors there face tight restrictions.
“Germans seem to be growing more and more skeptical about China, and consequently more willing to pursue a tougher approach to Beijing,” said analyst Hans Kundnani from the German Marshall Fund. In the clearest sign yet that Berlin could be squaring up for a battle, the German economy ministry this week said it was taking a closer look at two planned Chinese takeovers-effectively stalling both deals. The moves have not gone unnoticed in Beijing and Gabriel will likely face some prickly questions when he leads a 60strong business delegation on a five-day trip to China and Hong Kong from Tuesday.
Germany’s first punch came last Monday when the ministry said it had withdrawn its approval for Grand Chip Investment’s 670-million-euro ($730-million) purchase of chip equipment maker Aixtron, citing security concerns. German daily Handelsblatt said the surprise reversal came after US intelligence services warned that Aixtron products could be used for military purposes. The deal is now back under review, a process that could last three months. Days later, the economy ministry said it was also reviewing the mooted sale of German firm Osram’s general lighting unit to a Chinese buyer. So far there has been little official reaction from Beijing. But a bylined commentary carried by the official Xinhua news agency was scathing, accusing Germany of “protectionist moves” that called into question “Berlin’s sincerity in securing an open and transparent investment climate”. “It is time for Berlin to let go of its delusional “China threat” paranoia,” it added. — AFP