11/30/2021 01:39:55 pm

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Germany steps up offensive against China’s market influence

German politicians are becoming more vocal about China’s increased business activities in the country.

(Photo : China has made noticeable investments through acquisitions in Germany.

German politicians are becoming more vocal about China's increased business activities in the country creating a market influence.

China has made noticeable investments through acquisitions in Germany. However, the takeover spree by Chinese companies has reportedly caused apprehension and resistance among Germans.

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Sigmar Gabriel, Geman Economy Minister, recently accused China of having double standards. He said the country is acquiring key technologies in Germany, but is using "discriminatory requirements" for protecting its own companies against takeovers by foreign companies.

In a guest column for Die Welt newspaper, the German politician asked the European Union to adopt a tougher stance with China.

Gabriel further stated that Europe cannot be expected to accept such tactics. He urged the EU to ensure a fair playing field. He accused China of hampering foreign takeovers by subjecting them to discriminatory regulations.

The German minister is scheduled to visit China next week.

Germany recently withdrew its approval of takeover of Aixtron, a German semiconductor equipment company, by a Chinese group.

The withdrawal was allegedly caused by a US intervention in the matter. The US is believed to have told Germany that the technology may be used for military purposes.

In Germany, the government may only block acquisitions if they threat defense, financial or energy security stability.

In an interview with Frankfurter Allgemeine Sonntagszeitung, Gabriel added that China will be required to change its regulations if it wants to obtain the market economy status.

He also added that the world's second largest economy may otherwise be not granted the coveted status under the rules of the World Trade Organization. The EU is currently deliberating about bestowing the status upon China in December. 

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