The German government authorized Wednesday, October 26 the controversial participation of a Chinese group in the operation of a port terminal in Hamburg. But he limited the share ceded by invoking the protection “Security and Public Order”.
The Chinese group Cosco will only be able to acquire a share “less than 25%” in this terminal instead of the targeted 35%, “which will make it possible to prevent a strategic stake acquisition”said the Ministry of the Economy.
Division within the government
This compromise-like decision aims to appease criticism of Chancellor Scholz, in Germany and the European Union, for his supposed support for Chinese investment in this strategic economic infrastructure.
According to German media, Chancellor Olaf Scholz, himself a former mayor of Hamburg, refused to block this transaction, which was the subject of a preliminary agreement with Cosco a year ago. In doing so, he drew the wrath of six ministries of his government, including those of economy, interior and defence, which were opposed to the project.
Any attempt by the Chinese giant to increase its stake beyond the 25% threshold will be subject to government review, said the Ministry of the Economy.
A “purely financial” participation
Furthermore, the buyer is not authorized to exercise control over the activity of the port terminal, for example by negotiating “rights of veto over strategic or personnel decisions”. In the end, Cosco’s investment is reduced to “a purely financial contribution”assures the press release.
Hamburg is the first commercial port in Germany and the third in Europe behind Rotterdam (Netherlands) and Antwerp (Belgium). Cosco is the first Chinese shipowner.
Proponents of the project have argued that Chinese equity stakes already exist in other European ports, and that Hamburg could suffer from a competitive disadvantage. Opponents believe that times have changed. The EU attaches greater importance to the protection of critical infrastructure since the invasion of Ukraine by Russia.
“It’s better to sell 24.9% than more than 30%, but the decision is wrong”, reacted the chairman of the parliamentary committee for European affairs Anton Hofreiter. The argument of the Chancellor and his social democratic party “that it is a scientific project recalls statements around Russia and (the gas pipeline) Nord Stream”said the environmentalist, judging the position of the government, “at best, naive”.