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Chinese commerce chamber concerned with changes on German investment law

Xinhua Financein BERLIN
2017-03-07 11:15

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The Chinese Chamber of Commerce in Germany (CHKD) on Monday expressed its concerns over the brewing changes on German foreign investment laws, saying it might block free trade and investment, thus harm Germany's economy.

The chamber said in its newly-issued report that, Bundestag, the lower house of German Parliament, is currently discussing amending Germany's Foreign Trade and Payments Act, aiming to restrict foreign investment.

The drafts on review will include some articles to limit the investment that is believed to "harm the public safety order and security," "get subsided by nation to reach strategic goal" and "exceed the market price," the report said, citing sources close to German federal government and states.

The CHKD described the new articles as "obscure and vague," adding that they might add opacity and uncertainty to foreign investors. "Germany has benefited greatly from investment freedom and trade globalization.

The CHKD is confused about the law amendments on discussion and concerned about it," the report said. The controversial restrictions were seen by some experts as protectionist measures or political interference as these exact excuses were made to deter Chinese investors last year.

In 2016, the German government blocked China's Fujian Grand Chip Investment Fund from taking over its chip-equipment maker Aixtron, following a tip-off from U.S. intelligence services saying it would endanger the European Union's security.

The CHKD report reiterated that China's investment in Germany, which merely accounts for less than 1 percent of all foreign investment, is win-win cooperation on the basis of mutual trust.

They will inject capital, create jobs and bridge gaps to Asian markets. As global economy is facing great uncertainties, the CHKD called on related enterprises and institutes in China and Germany to join hands in maintaining a free and open system of international trade and investment, opposing protectionism of any form.

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