(LtoR) German and a Chinese flag are observed flying in the wind from the Chancellery, as the dome of the Reichstag making, which properties the German lower house of Parliament, can be found in the track record, in Berlin on June 19, 2023, throughout a stop by of China’s Premier to Germany. (Picture by John MACDOUGALL / AFP) (Picture by JOHN MACDOUGALL/AFP via Getty Illustrations or photos)
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China is heading after licences to enhance its access to German technologies as investment regulation would make company acquisitions in the sector more and more challenging, the Handelsblatt newspaper claimed on Wednesday, citing a examine.
The study carried out by the IW financial institute, analysing Bundesbank data on behalf of the newspaper, uncovered German licence revenues from China more than tripled in 2022 in contrast to 2014. In contrast with 2020, the boost was about 50 %.
“There is a crystal clear early sign that Chinese businesses are on the lookout for a new way to get obtain to German know-how,” stated Juergen Matthes, head of IW’s world and regional markets investigate device.
Tech licences are just one way for China to consider to get in “by way of the back door”, he informed Reuters.
With the German economy even now smarting from a breakdown in ties with Russia, Berlin released an overhaul of its China policy, calling for a “de-risking” approach that seeks to stay away from over-reliance, while acknowledging the country’s relevance as a crucial current market for lots of providers.
As a final result, immediate investments and takeover bids by Chinese firms have attracted scrutiny in Berlin in latest months. Very last yr, a bid by China’s Cosco to invest in a Hamburg port terminal brought on a political crisis just before being authorised at a lower stake than originally planned.
Through licencing agreements, Chinese companies can get legal authorization to use German technologies.
According to Handelsblatt, most this kind of agreements are considered unproblematic, but in some conditions they give Chinese firms accessibility to delicate study, for case in point in the semiconductor industry, where by the technological know-how can also be utilized in a armed forces context.
Requested irrespective of whether Berlin would control such licence designs a lot more closely, a spokesperson for the German economy ministry advised Reuters numerous possibilities had been staying examined as component of a prepared reform of investment decision audit regulation.