China is interested in the German automobile plants that are planned to close, especially the Volkswagen facilities. This was reported on Thursday, 16 January, by Reuters with a link to a source familiar with the government’s PRC plans. Buying these enterprises would allow China to strengthen its influence in the German automotive industry, known for high quality and old traditions, the agency’s interlocutor noted.About what the specific investors from China is relevant, till not reported. Although Chinese companies already invest in different sectors of the German economy, the
making of cars in Germany remains a new frontier for they. Volkswagen, despite strong opposition by unions, is considering the possibility of closing the plants in Dresden and Osnabrück or possibly selling them. While
Chinese companies are concerned about the reaction of German unions, who require guarantees of jobs and the preservation of production. The Reuters source indicated that decisions about investment would depend on the position of the new
government of Germany, which will be known after the early parliamentary elections on 23 February. The investment from Peking will be the beginning of increased competition
between Chinese and German automakers. Volkswagen refused to comment on the report of possible Chinese investment. A spokesman for the company indicated that its goal is to find a viable solution that considers the interests of the firm and its employees. In his turn, the representative of the Chinese Foreign Ministry emphasized that Beijing has provided a great deal of opportunities for German firms to invest in the Chinese economy.The PRC
hopesthattheGermansidewill alsoremainopenandcreate afairand”non-discriminatory”businessenvironmentforChinesecompanies.
