Ministry seeks a level playing field

Call came after Berlin withdrew its approval of chip equipment takeover

The Ministry of Commerce hopes the German government's recent investigation of a cross-border acquisition by a Chinese company is "an exception" and doesn't represent a policy against Chinese businesses, the ministry's spokesman said on Nov 2.

Shen Danyang, the spokesman, said even though Chinese investment in Germany has grown rapidly in recent years, the total volume is still relatively small, and so it's unnecessary for German officials to worry that German technology and jobs will be lost as a result of Chinese investment.

Shen's comments came after Germany's Federal Ministry for Economic Affairs and Energy withdrew its approval of Fujian-based Grand Chip Investment Fund LP's takeover of German chip equipment maker Aixtron SE late in October, throwing up an unexpected hurdle for the 670-million-euro ($728 million; 603.6 million) deal on the homestretch.

The German government said it had information that Aixtron had technology that was relevant to security, especially to the defense sector, which could be exposed in a takeover. The deal was cleared on Sept 8.

China and Germany should firmly push forward with liberalization of trade and investment, and should oppose protectionism, Premier Li Keqiang says, according to a government statement released on Nov 2.

Li made the comments on Nov 1 when he met German Economy Minister Sigmar Gabriel in Beijing.

China, with 260 projects, and the United States with 252, remained Germany's two biggest investors in 2015. Chinese companies mainly invested in Germany's machinery manufacturing, electronics/semiconductor, automotive, information communications and software sectors, according to data from Germany Trade and Invest, the official investment promotion agency.

Shen calls for equal treatment of Chinese companies in Germany.

"The future of China-Germany business ties will be decided on trade in high-end goods, and investment in infrastructure projects, high-tech manufacturing and multimodel logistics services," says Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing,

Li says despite both the Chinese and German economies having been affected by the global economic downturn, the degree of interdependence between the two remains stable in bilateral cross-industry investment and trade.

Chinese home appliance manufacturer Midea Group offered to take a 95 percent stake in German robotics manufacturer Kuka AG in August, and the German government said it would not block the acquisition, as it would not endanger German national security.

Contact the writers throughzhongnan@chinadaily.com.cn

A Chinese exhibitor talks to a trade show attendee at the Hannover Messe 2016 in Germany. Provided to China Daily

(China Daily Africa Weekly 11/04/2016 page28)