EU warns Germany over Chinese port investment

BRUSSELS: The Euro­pean Commission warned Germany months ago against Chinese investment in Hamburg’s port, a source close to the matter told AFP on Saturday, as Chancellor Olaf Scholz faced criticism for reportedly backing the transaction.

The source confirmed information in a report by the Handelsblatt daily that the EU executive had in spring given Berlin a thumbs-down to Chinese shipping giant Cosco taking a 35-per cent stake in the port under a deal agreed last year but not yet authorised.

The commission was worried that sensitive information about activity in the port — the third busiest in Europe — could be relayed to China’s government.

Its recommendation was non-binding, with Germany having the final say on the deal.

German broadcasters NDR and WDR on Thursday reported that Scholz’s office is planning to approve the deal despite opposition from six different ministries in Germany’s coalition government.

According to the report by NDR and WDR, the deal would effectively be approv­­ed automatically if the government does not intervene by the end of this month.

Scholz, who was mayor of Hamburg between 2011 and 2018 before becoming vice chancellor and then chancellor, announced after attending an EU summit on Friday that he would visit China in November.

He said that “nothing is decided” about the Chinese investment, but noted there were Chinese stakes in other European ports.