The German government has given its approval to a long-debated deal which would see China-state-run shipping giant COSCO purchase a large stake in a container terminal in the Hamburg port, regardless of security concerns or protests from members of the governing coalition.
Berlin had approved the deal in October. However last month it announced it would revisit its decision. It agreed to the review shortly after the Tollerort container terminal was classified as critical German infrastructure by the BSI, Germany’s national cyber security agency. The agency’s classification would have placed additional restrictions on the acquisition.
A spokesperson for the German government said on Wednesday that the German government would be “sticking” with its decision from October, and would not be making any amendments to it, noting it had determined that the deal was in line with BSI’s classification of the terminal as vital national infrastructure.
In its statement, the government noted that it informed domestic port logistics firm HHLA and the Chinese firm COSCO that it had determined the deal was compliant with a cabinet decision which limits the Chinese state-run company’s ownership in the terminal to less than 25%.
There had been fierce opposition to the deal from the Greens and the Free Democrats (FDP), which are partners in the coalition of Chancellor Scholz’s Social Democrats (SPD). The coalition had been demanding the deal be reconsidered, and for the stake of COSCO in the terminal to be reduced.
The deal, which is the ninth acquisition of a stake in an EU port by the Chinese state-run group, was criticized as a major security issue, since it would give Beijing excessive influence in the port infrastructure of the European Union.
On the other side, HHLA, a supporter of the deal, noted that if the deal goes through, COSCO will make the Hamburg port a preferred destination, increasing port traffic, and helping to secure more jobs. The port operator added that the agreement would thus strengthen the importance internationally of the Hamburg port, as a central logistical hub for the EU.
Almost a third of the shipments traveling through the port’s terminals are either traveling to or from China, the largest trade partner of Germany for the past seven years. Trade between the two nations reached a record high last year of €298 billion ($320 billion).