EU warns Germany against buying Chinese port

by Markus Wacket (Reuters) The European Commission warned the German government last spring not to approve an investment by Chinese company Cosco in the port of Hamburg, the German daily Handelsblatt reported on Friday, citing sources.

Last year, shipping giant Cosco made a bid to take a 35% stake in one of three terminals at Germany’s biggest port in the northern city of Hamburg.

Germany’s ruling coalition is split over whether to approve the investment, government sources say, even as Beijing urges Berlin not to politicize the bid and the port authority warns it could harm the EU. ‘economy.

Also Read: Port of Hamburg backs acquisition of COSCO terminal amid German government concerns in China

According to the Handelsblatt, the EU has warned that sensitive information about the company could end up in Chinese hands if Germany allows the investment.

The German government, which is still considering whether to approve the deal, declined to comment on the report. A spokesman for Olaf Scholz said the German Chancellor had not yet agreed with the relevant ministers how to proceed.

The Commission said it comments on individual cases.

European Union leaders are due to discuss reducing their economic dependence on China on Friday, among other topics, in their second day of talks in Brussels.

Also Read: German Chancellor tries to quell port deal dispute with China’s COSCO

(Reporting by Markus Wacket; Writing by Maria Sheahan; Editing by Matthias Williams, Reuters)

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