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Germany says controversial Chinese stake in Hamburg port to go ahead
Business and Economy

Germany says controversial Chinese stake in Hamburg port to go ahead

by  AFP 1 min read
Cosco initially sought to purchase a larger 35-percent stake in the port before a compromise agreement was announced
Cosco initially sought to purchase a larger 35-percent stake in the port before a compromise agreement was announced. Photo: Axel Heimken / AFP/File
Source: AFP

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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.

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.

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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.

Source: AFP

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