World

Germany may block sale of chip factory to Chinese-owned company


BERLIN – The German government may this week decide to block the sale of the chip factory to a Chinese subsidiary in Sweden, following a recent compromise over a Chinese shipping company’s investment in the country. a German container port.

German company Elmos said late Monday that it had been informed by the Economy Ministry that the sale of the Dortmund plant to Silex Microsystems AB “will most likely be banned during the upcoming cabinet meeting”. The department has previously “indicated to the parties that the transaction will most likely be approved,” Elmos added.

Silex is owned by China’s Sai Microelectronics, according to German media. Plans to sell 85 million euros ($) were announced in December.

The change comes as Germany struggles to allow Chinese companies to invest in Europe’s largest economy.

The cabinet, which will hold its weekly meeting on Wednesday, reached an agreement late last month after officials debated whether to allow China’s COSCO to take a 35 percent stake in a container terminal at the port. Hamburg or not.

Members of two junior parties in the ruling coalition opposed the deal, while Prime Minister Olaf Scholz, the former mayor of Hamburg, downplayed its importance.

COSCO has been approved to have a stake below 25%, with an upper threshold allowing investors to block company decisions.

Scholz traveled to Beijing last week, becoming the first leader of the Group of Seven leading industrialized nations to meet President Xi Jinping since the COVID-19 pandemic began. The visit, which comes shortly after Mr. Xi further consolidated his authoritarian rule at home, has drawn some criticism at home.

Scholz is encouraging companies to diversify, but not preventing them from doing business with China. He said before the trip that “we don’t want to separate from China” but “we will reduce our one-sided dependence in the spirit of smart diversification”.

goznews

Goz News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably.

Related Articles

Back to top button