Germany Allows Smaller Chinese Stake In Hamburg Port

The German cabinet approved on Wednesday an investment by China's Cosco for a 24.9 percent stake in one of logistics firm HHLA's three terminals in Germany's largest port in Hamburg.

This is less than the initially planned 35 percent stake that the Chinese shipping giant had aimed for and does not give Cosco any say in management or strategic decisions.

The compromise was negotiated after significant political resistance against a Cosco participation and comes a week before Chancellor Olaf Scholz is due to travel to the mainland.

With the original 35 percent deal, the German logistics firm had wanted to tie its long-standing shipping customer to the Hamburg port in the face of fierce international competition.

However, the painful experience of being too dependent on Russian gas has changed the German government's attitude towards strategic foreign investments. Economy minister Robert Habeck was among the politicians who said Germany should avoid Chinese investment in critical infrastructure if possible.

Supporters of the HHLA deal say it will allow Hamburg, where Scholz was mayor for seven years, to keep pace with rival ports that are also vying for Chinese trade and some of which are partly owned by Cosco. (Reuters)