THE German Cabinet approved on Wednesday (Oct 26) an investment by China's Cosco for a 24.9 per cent stake in one of logistics firm HHLA's three terminals in Germany's largest port in Hamburg, government sources told Reuters.
This is less than the initially planned 35 per cent stake that the Chinese shipping giant had aimed for and comes a week before Chancellor Olaf Scholz is due to travel to China.
The compromise was negotiated after significant political resistance against the deal. Economy Minister Robert Habeck was among the politicians that said that Germany should avoid Chinese investment in critical infrastructure if possible.
Supporters of the deal say it will allow Hamburg, where Scholz was mayor for seven years, to keep pace with rival ports that are also vying for Chinese trade and some of which are partly owned by Cosco. REUTERS