Berlin takes a tougher stance on Beijing following Ukraine war
Pulling away: Germany has reduced Chinese-owned Cosco’s stake in Hamburg port, among other measures. Image via Getty Images.
The German government’s recent prohibitions of sale of two German chip companies to Chinese investors reflect changing attitudes and China’s perceived threat to critical technologies.
On November 9, the Federal Ministry for Economic Affairs and Climate Action blocked the sale of Dortmund-based chip maker Elmos, which was due to be sold to the Swedish subsidiary of Chinese Sai Microelectronics, and Bavaria-based ERS Electronic GmbH, which was set to be acquired by an undisclosed Chinese investor.
Daniel Wiedmann, head of the antitrust department at law firm Poellath, tells fDi that these blocked transactions reflect a broader “shift” in the way that Germany treats Chinese investment.
“The German government is aware of its dependency on China and does not want to leave itself vulnerable,” he says. “We’re living in a completely different world compared to the 1990s or even the early 2010s,” he adds.