German Economics and Climate Protection Minister Robert Habeck in Berlin on November 9, 2022. (AFP/John MACDOUGALL)
The German government, anxious to be less dependent on Beijing in strategic areas, on Wednesday blocked the purchase of two factories in the semiconductor sector coveted by Chinese capital.
“We need to look closely at corporate takeovers when it comes to important infrastructure or when there is a risk that technology will be transferred to buyers in non-EU countries,” the ministry commented. economy.
The Council of Ministers has approved the blocking of the acquisition by the Swedish group Silex, owned by the Chinese group Sai MicroElectrics, of a factory of the German manufacturer Elmos producing “wafers”, these very thin slices used to manufacture microelectronic components.
German Education and Research Minister Bettina Stark-Watzinger at the Hannover Technology Fair on May 29, 2022 (AFP/Archives/Axel Heimken)
The second blockage relates to the acquisition of the company ERS Electronic, based in Bavaria, which provides cooling technology to semiconductor manufacturers, said German Research Minister Bettina Stark-Watzinger. The name of the Chinese investor candidate for the acquisition is not known.
“China is and must remain a trading partner. However, we must not be naive and we must see whether trade and market interests risk being used for power politics, against the interests of the Federal Republic of Germany”, observed in front of the press the German Minister of Economy, Robert Habeck.
Germany endorses the blocking of the takeover by the Swedish group Silex (Chinese group Sai MicroElectrics) of the German factory Elmos, which manufactures microelectronic components (AFP/Archives/Ina FASSBENDER)
Elmos, which produces semiconductors mainly for the automotive industry, announced at the end of 2021 that it would sell its Dortmund factory for 85 million euros to Silex.
Elmos and Silex say they “regret” this decision, in a press release sent by the German company, for whom this takeover project would have “allowed to sustainably strengthen the manufacture of semiconductors in Germany”. Elmos says he is studying possible legal remedies against the government’s veto.
– “National security” –
German intelligence, under the authority of the Ministry of the Interior, had advised against the acquisition of the Elmos company that Berlin initially intended to approve.
But the German government has laid out a new roadmap vis-à-vis China of “reducing unilateral dependencies, becoming more independent, preventing the leakage of key technologies and protecting infrastructure and clean production capacities”, according to a report. government source.
US President Joe Biden during his final campaign rally in Bowie, Maryland, Monday November 7, 2022 (AFP/Mandel NGAN)
Semiconductors, increasingly sophisticated electronic components, are part of the definition of this strategy. They even represent, Joe Biden explained on September 9, a subject of “national security”.
“Germany, as Europe’s leading economy, is attractive (…) but there may also be investments that can harm the security of our country”, thus justified on Wednesday the Ministry of the Economy.
Germany remains open to investors, but “we are not naive either”, added Mr. Habeck, environmental vice-chancellor of the government of Olaf Scholz.
Semiconductors, whose production is dominated by Asia, are considered a strategic industry by Europeans, who wish to increase their sovereignty.
– Controversial –
“This shows that we must put an end to a strategic flow of know-how in key technologies to China”, commented the cabinet of the minister, for whom China has “passed more and more from the status of a strategic partner to that of a tough competitor and systemic rival of Germany and the EU”.
At the end of October, Berlin had caused controversy by authorizing a Chinese investment in a port terminal in Hamburg, even if the share sold had been limited in order to prevent any influence in the strategic decisions of the company.
Chinese Premier Li Keqiang (R) greets German Chancellor Olaf Scholz at the People’s Palace in Beijing on November 4, 2022 (POOL/AFP/Kay Nietfeld)
There are currently 44 foreign investment projects in Germany under consideration, 17 of which come from China, according to the entourage of the Ministry of Economy.
Germany’s economic dependence on China, its largest trading partner, is questioned in Berlin, in the context of rising geopolitical tensions between Beijing and the West.
If Chancellor Scholz does not intend to turn his back on the Asian giant, as illustrated by his recent trip to China, he wants “equitable economic relations, with reciprocity” especially in “investments”, he said. warned in Beijing.
© 2022 AFP
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