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Bloomberg
Chinese companies spent far less on German firms in the second half of this year as Chancellor Angela Merkel’s government moved to tighten its grip on foreign investment, according to data compiled by business services provider Ernst & Young.
Chinese investment in German takeovers or in stakes in German companies plunged to $311 million during the period from almost $10 billion in the first half of 2018.
The number of transactions for the full year dropped to 34, compared with 54 in 2017 and 68 the previous year.
“We expect the number to stabilise next year,†Yi Sun, an EY China business specialist, was quoted as saying by the Frankfurter Allgemeine Zeitung, which published the figures. “It will take some time before we see another slight increase.â€
Merkel’s cabinet this month agreed to lower the threshold for government probes of foreign stakes in German businesses to 10 percent, driven by concern about China’s efforts to gain footholds in sensitive industries, such as those related to security and defense.
EY is advising Chinese clients to avoid investing in German companies like aerospace suppliers, Yi Sun told the FAZ.