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GERMANY AND CHINA

Germany says controversial Chinese stake in Hamburg port to go ahead

The German government said Wednesday that it would allow a Chinese firm to buy a stake in a Hamburg port, after the terminal was classed as critical infrastructure.

Published: 11 May 2023 09:15 CEST
container ships discharged at hamburg port
Container ships are discharged at Hamburg Port terminals. The EU is said to have warned Germany months ago about backing China's investment in the port. (Photo by Axel Heimken / AFP)

The government controversially gave the go-ahead in October for state-owned Chinese shipping giant Cosco to buy up to a 24.9-percent stake in the Tollerort container terminal in Hamburg.

The green light came despite security concerns over the sale of the infrastructure to Chinese investors, with Chancellor Olaf Scholz resisting calls to ban the sale outright.

In April, Berlin said it was reassessing whether to allow the sale to go ahead.

But on Wednesday a government statement said the original approval of a sale of less than 25 percent had not changed.

No more details were given about the reasons behind the decision.

Cosco initially sought to purchase a larger 35-percent stake in the port before a compromise agreement was announced.

Germany has been re-evaluating its economic relationship with China amid concerns over human rights and the communist country’s ties with Russia, as well as the escalation of tensions over Taiwan.

In November, Germany blocked the sale of two chipmakers to Chinese investors because of security concerns around the key technology.

Germany has also capped investment guarantees for German companies doing business in China, as Europe’s largest economy looks to reduce its dependence on Beijing.

READ ALSO: Will Germany stop Chinese purchase in controversial Hamburg port?

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GERMANY AND CHINA

Germany blocks full Chinese takeover of satellite startup

Germany has blocked a complete Chinese takeover of a satellite startup on national security grounds, sources close to the matter told AFP Thursday, as Berlin takes an increasingly hard line against Beijing.

Published: 14 September 2023 12:43 CEST
Germany blocks full Chinese takeover of satellite startup

Concerned at the heavy reliance of Europe’s top economy on China, Chancellor Olaf Scholz’s government has been pushing to “de-risk” and dial back dependencies.

The German tech company KLEO Connect aims to establish its own network of satellites in low Earth orbit that can provide internet to remote locations, hoping to rival Starlink.

The strategic importance of space telecommunications has been highlighted by the Ukraine war where Starlink, operated by Elon Musk-owned company SpaceX, has become a key battlefield tool for Kyiv.

According to German media reports, Shanghai Spacecom Satellite Technology (SSST) holds about 53 percent of KLEO Connect and wanted to acquire another 45 percent from German firm EightyLeo.

READ ALSO: Beijing says Germany’s new China strategy to result in ‘risks’

But Berlin blocked SSST’s move after an investment review by the economy ministry concluded that it could endanger public security.

KLEO Connect did not respond to requests for comment. The economy ministry has also declined comment.

There has been a long struggle for control of the company, at the heart of which are frequency rights – giving access to satellite spectrum – registered in Liechtenstein some years ago, Die Welt newspaper reported.

Other recent cases have highlighted growing German concerns over Chinese investments.

Last year, the government blocked the sale of two chipmakers to Chinese investors due to security concerns.

The proposed sale of a stake in Hamburg port to a Chinese firm sparked a furious political row, but Chancellor Olaf Scholz ultimately approved the acquisition of a stake, albeit at a reduced size.

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