12/03/2021 06:25:22 pm

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China warns Germany over Aixtron approval issue

China, Germany, Aixtron

(Photo : Pixabay) China has urged Germany to welcome Chinese investment in the country.

China has urged Germany to take a fair stand over Chinese acquisitions in Germany.

Chinese companies have been on a buying spree for German firms, especially in the hi-tech sector. This has raised concerns in Germany, pushing the government to take protectionist measures. The issue has been heightened by German government's recent withdrawal of its approval for the Aixtron deal.

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Speaking at a press briefing in Beijing, Shen Danyang, spokesman for the Ministry of Commerce, said that German concerns about Chinese acquisitions leading to job loss in their country are unnecessary. He further said that China hopes that Germany will retain its calm and create a welcoming environment for foreign investors.

Referring to recent approval withdrawal for German firm Aixtron's acquisition by a Chinese company, Shen said that China expects the step to be an "exception' and not the sign of a change in Germany's policies. Late last month, Germany authorities reopened the case of Aixtron's acquisition by Fujian Grand Chip Investment Fund. The authorities cited security concerns as the reason for withdrawing their approval.

However, the Aixtron-Fujian deal is not the first agreement to come under the radar of regulators. Earlier, Germany had rejected China's request for the approval of a bid to takeover Ledvance. Ledvance is the light bulb unit of Osram.

These concerns were discussed during Tuesday's meeting between Chinese officials and Germany's Economic Minister Sigmar Gabriel. Gabriel is currently in China for an official visit. He is accompanied by a group of 60 delegates. Last month, the minister had accused China of strategically buying German companies dealing in sensitive technologies. Gabriel also claimed that China used "discriminatory requirements" to protect its companies from foreign corporations. 

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