How the German government was divided by a Chinese investment in the Port of Hamburg

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The German government has become divided over a deal, agreed last month, which saw Chinese conglomerate Cosco invest in the Port of Hamburg.

The deal had been in the works since September 2021 and was championed by the chancellor , Olaf Scholz.

The prospect of dependency on an authoritarian power is a sensitive topic for the whole of Europe, not just Scholz’s government. Ever since Russia invaded Ukraine, Europe has been reckoning with the consequences of years of dependence on Russian primary imports, particularly gas. Russia has cut gas supplies from pipelines into Europe, stoking its energy crisis.

Meanwhile, China has been growing its influence in Europe through its ambitious Maritime Silk Road Initiative . By strengthening Chinese trade links to Europe, the MSRI looks to cement China’s dominance in the shipping industry. Building on the work of companies like Cosco can help China consolidate its position as the world’s manufacturing hub.

It is unclear whether Cosco’s motives for the investment are the same as those of the Chinese state. Despite holding the power to influence companies, the Chinese government often grants them free reign to compete with their global rivals. Being a multinational corporation, Cosco’s primary mission in Germany is to pursue profit, not undermine its security.

 

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