From Deutsche-Welle, October 25:
The suggested compromise lets China's Cosco buy a smaller stake than planned in the Hamburg port terminal. The widely criticized initial deal, would've given Cosco a major stake in the vital port.
Germany’s ruling coalition is close to striking a compromise that would allow Chinese shipping giant Cosco to take a smaller stake in a Hamburg port terminal than initially planned, news agencies reported on Tuesday, citing government sources.
Last year, Cosco had made a bid to take a 35% stake in one of logistics firm HHLA's three terminals in Germany's largest port in Hamburg.
There is reportedly a dispute between German Chancellor Olaf Scholz and several government ministries over the bid, amid concerns that it would give Cosco too much of an investment share in the port. Cosco, which is headquartered in Beijing, is already the Hamburg port's biggest client.
As per reports, Berlin may approve a sale of 24.9% of the terminal to Cosco under the compromise.
The decision comes as Germanytries to strike a balance between maintaining ties with its biggest trade partner, China, while avoiding heavy reliance on it.
Tensions between China and Western countries have deteriorated recently. During a NATO summit last summer, member-states declared China as a "security challenge."
What is the reaction to the revised deal?
Government officials told German news agency DPA the revised share for Cosco was an "emergency solution" to save the deal without giving the Chinese company any substantive influence on the management of the important terminal.Initial media reports citing sources close to the negotiations suggest that Cosco might agree to the smaller stake deal.
However, Germany's ministries of economy and foreign affairs continued to caution against the deal....
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