- Title: Germany blocks Chinese investment in two chipmakers after security concerns
- Date: 9th November 2022
- Summary: BERLIN, GERMANY (NOVEMBER 9, 2022) (REUTERS) GERMAN ECONOMY MINISTER ROBERT HABECK ARRIVING TO TALK TO JOURNALISTS MEDIA (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, ROBERT HABECK, SAYING: "Good afternoon, Ladies and Gentlemen! I wanted to briefly inform you after the cabinet's meeting that today's cabinet agenda also included two investment reviews. Both were negative. I
- Embargoed: 23rd November 2022 12:42
- Keywords: COSCO China ELMO Germany Olaf Scholz Robert Habeck
- Location: DORTMUND, BERLIN, FRANKFURT + HAMBURG, GERMANY
- City: DORTMUND, BERLIN, FRANKFURT + HAMBURG, GERMANY
- Country: Germany
- Topics: Europe,Government/Politics
- Reuters ID: LVA002807009112022RP1
- Aspect Ratio: 16:9
- Story Text: The German government on Wednesday (November 9) blocked prospective Chinese investment in two domestic semiconductor producers after the moves raised concerns over national security and the flow of sensitive technological know-how to Beijing.
The government said it had vetoed the takeover of the chip factory of the Dortmund-based company Elmos by Silex, a Swedish company that is a subsidiary of Chinese group Sai Microelectronics.
Berlin also blocked investment in ERS Electronic, which is based in the southern state of Bavaria, government sources told Reuters. A spokesperson for ERS Electronic said there was no plans to sell the company but it had been exploring the option of getting investment from a Chinese private equity firm.
The decisions came at a time of heightened sensitivity around relations between Berlin and Beijing. The government of Chancellor Olaf Scholz, who visited China last week, is trying to balance a push for access to the Chinese market for European companies with addressing security concerns and reducing Germany's trade reliance on China. It has been reviewing its policy towards China especially in the wake of Russia's invasion of Ukraine in February, which exposed Germany's heavy dependence on Russian gas.
Speaking to reporters after the decision, Economy Minister Robert Habeck said China was taking "a deliberate, strategic approach, especially in the area of semiconductors and microchip manufacturing, to influencing both knowledge discovery and production control".
Concerns about the extent of Chinese influence in German businesses came to the forefront last month after Scholz pushed through a decision to allow Chinese shipping giant Cosco to buy a stake in a terminal in the country's largest port, triggering unprecedented protest from within his own governing coalition.
In that case, the cabinet approved a 24.9% stake investment by Cosco, less than an initially planned 35% stake, and it does not give Cosco any say in management or strategic decisions.
(Production: Tanya Wood and Daria Shamonova) - Copyright Holder: REUTERS
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