Is Germany too dependent on China?
The Port of Hamburg, Germany’s largest seaport, is considered the country’s gateway to the world. But, above all, it is a gateway to China, which is the port’s biggest customer. In the first half of 2022 alone, more than 1.3 million containers from China arrived here.
Now Chinese shipping giant COSCO wants a 35% stake in the port, and its operators would like that too. They say this would make the container terminal a major transshipment hub in Europe for the world’s biggest shipping company. But the Ministry of Economy in Berlin has reservations and may not approve COSCO’s investment in the port of Hamburg. The dispute over COSCO’s involvement illustrates how rethinking ties with China affects the German economy.
Germany’s reliance on Russian gas proved to be a weakness following Russia’s invasion of Ukraine. This finding led the government to also review the country’s relationship with China. Around 5,000 German companies operate in China today.
How to deal with an autocracy that has been Germany’s biggest trading partner for years? How to deal with the country that EU documents call “partner”, “competitor” and “strategic rival” – with the balance tipped towards the latter?
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.