Port participation in Hamburg: Chancellery apparently wants to enforce China business

Such a confrontation is rare: although all the relevant ministries reject Chinese entry into the Port of Hamburg, the Chancellery, according to information from NDR and WDR enable.

Despite warnings from all the relevant ministries, the Chancellery apparently wants to sell parts of the Port of Hamburg to the Chinese state-owned company Cosco. Now a dispute in the federal government about the entry of the Chinese company in the port of Hamburg has escalated. According to information from NDR and WDR all six ministries that are technically involved in the investment review have rejected the deal. According to the research, however, the Chancellery is pushing for the entry to take place.

The Chinese shipping company Cosco intends to take over shares in the port operator HHLA and to hold more than a third of the Hamburg container terminal in Tollerort. Because this is so-called “critical infrastructure”, the Ministry of Economics has started an investment review process.

If the federal cabinet does not pass a resolution and no longer agrees to an extension of the deadline, the deal would automatically come about according to the law. That would be the case at the end of October, shortly before Chancellor Olaf Scholz’s planned visit to China. “If no decision is made by the end of the period, approval is deemed to have been granted,” explains Kai Neuhaus, a specialist in investment audits at the commercial law firm CMS.

Test procedures not on the agenda

In the course of the investment review process, the leading Ministry of Economics has NDR– and WDR-Information the topic has already been registered for final rejection in the Federal Cabinet. However, the Chancellery had not put the test procedure on the agenda for weeks. As a result, no cabinet decision could be taken. Instead, the Chancellery instructed the departments involved to look for a compromise so that the deal can be approved.

When asked, the Ministry of Economic Affairs only stated that it would not comment during an ongoing process. According to a government spokesman, the Chancellery will not comment on ongoing investment review procedures “with a view to the impact of business and trade secrets of the companies involved”. Cabinet topics are therefore decided by state secretary meetings. There will be no reports from these working sessions.

“Out of solidarity with Hamburg”

The blockade of the Chancellery is remarkable, especially at this point in time. After Russia’s war of aggression against Ukraine, it became clear how vulnerable Germany can be when an autocratic regime suddenly asserts its own interests. This is precisely why the departments involved – they are led by the SPD, Greens and FDP – reject the deal in Hamburg.

The Green MEP and former party leader Reinhard Bütikofer says in the ARD magazine panorama: “The ministers are obviously coming to the conclusion that the risks are too high. Otherwise the Federal Government would not have had this opinion.” According to Bütikofer, Hamburg’s First Mayor Peter Tschentscher obviously hopes, with a view to Scholz, “that his predecessor in office will ensure that it happens out of solidarity with Hamburg”.

rights to have a say in decisions

According to the research, two points in particular are cited for the rejection in addition to the changed geopolitical situation: Cosco should not only receive a purely financial participation, but also provide a managing director and have a say in decisions. Since China is already the port’s most important customer, there is “potential for blackmail” in connection with the planned stake in the container terminal.

Rolf Langhammer from the Kiel Institute for the World Economy explains in an interview panorama: “The long-term strategy of the Chinese could of course be to seize control of the entire supply chain, both digital and maritime, in Europe.” This could give China a competitive advantage or initiate an “abuse of economic power”. HHLA, on the other hand, stated that it generally does not comment on the content of agreements. However, one is in “objective-constructive” talks with the federal government.

BND and the Office for the Protection of the Constitution warn

Not only the Ministry of Economics, Interior, Defense and Transport as well as the Foreign Office and Ministry of Finance are warning about the deal. The EU Commission has reportedly spoken out against it. The security authorities involved in the test procedure are said to have warned most clearly: In addition to the Federal Office for the Protection of the Constitution (BfV), the Federal Intelligence Service (BND) in particular tried to sensitize the government. BND President Bruno Kahl publicly stated in parliament on Monday that Chinese participation in critical infrastructure was viewed “very, very critically”.

Germany is not alone in its skepticism. The exchange with Western allies such as the USA or Great Britain on the subject of China is very close. Both states have long been vehemently warning of China’s ability to influence the world. There is more rapprochement on the subject: last year, it was decided to set up an EU-US Trade and Technology Council (TTC) group that aims to work more closely together on “future-oriented transatlantic issues”, such as new technologies such as artificial intelligence, in trade or climate.

The main aim is to counter China’s influence in these areas and to push it back. For example, third countries, including emerging and developing countries, should be supported with investments to be able to set up their own sovereign digital systems. At a first meeting of the TTC in September 2021 in Pittsburgh, the participants agreed on common principles, for example for investment reviews or securing supply chains. The exact contents are considered confidential.

German companies contacted

From documents that WDR and NDR are available, it emerges that the American-European working group is concerned with how particularly important technologies of the future, including semiconductor chips, whose production and supply chains can be secured. In addition, the research and development of new technologies is to be promoted and intensified – also to prevent excessive dependence on China in this field.

The federal government has not yet publicly allowed the dispute over Beijing’s grip on the port of Hamburg to escalate. Greens in particular expressed skepticism. Economics Minister Robert Habeck already said in September that he was “tending in the direction that we wouldn’t allow it”. Foreign Minister Annalena Baerbock recently told the “Süddeutsche Zeitung”: “With every investment in German critical infrastructure, we have to ask ourselves what that could mean at the moment when China would oppose us as a democracy and a community of values.”

The Chinese government could be less afraid of open conflict. A serious accusation is being reported from German business circles, namely that the Chinese embassy recently contacted German companies directly. One should work for the Chinese entry into the port of Hamburg. Otherwise there would be consequences for your own business. When asked, the Chinese embassy referred to a previous statement by the foreign ministry spokeswoman: It is hoped that Germany will remain true to principles such as those of the open market instead of politicizing normal economic relations.

The ARD magazine Panorama reports on this topic today at 9:45 p.m. in the first.