Capital does have nationality: Germany’s fears of Chinese investments. OSW COMMENTARY NUMBER 230 | 25.01.2017

Poplawski, Konrad (2017) Capital does have nationality: Germany’s fears of Chinese investments. OSW COMMENTARY NUMBER 230 | 25.01.2017. [Policy Paper]

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Abstract

The flourishing cooperation in German-Chinese relations is transforming into rocky friendship due to the increasingly strong economic rivalry between the two nations. Recent acquisitions of German companies by Chinese investors indicate that Germany is struggling to defend its interests in bilateral relations with Beijing in an assertive manner. Berlin is becoming increasingly aware of the need to devise and pursue a common EU policy towards China. It cannot be ruled out that the rising power of the Middle Kingdom will be a key argument when devising new initiatives within the EU’s industrial policy for defending Europe against an influx of investors from outside the EU. So far, Germany has been the main brake on progress, blocking the adoption of such solutions. In this context, there may be a chance for American-European cooperation, should the new US President Donald Trump be interested in pursuing a more assertive policy towards China.

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