Germany has blocked a Chinese state-owned firm’s attempt to acquire a majority stake in a logistics company operating in the port of Hamburg, highlighting Berlin’s tightening stance on foreign investment from China amid broader concerns over national security and economic dependence.
The German cabinet approved the decision on Tuesday to prevent Cosco, one of China’s largest shipping groups, from purchasing an 80 percent share in Konrad Zippel Spediteur, a medium-sized logistics firm specializing in inland container transport that primarily connects the North Sea port of Hamburg with eastern Germany. The economy ministry explained that the acquisition posed risks to public security and could have increased Germany’s and the European Union’s reliance on foreign entities for critical supply chain infrastructure.
“The acquisition would have deepened dependencies and jeopardised the resilience of Germany’s and the EU’s supply chains,” a ministry spokesperson said in a statement. The ministry also emphasized that while Germany welcomes foreign investment, it reviews transactions on a case-by-case basis to determine if they threaten public order or security. To date, Berlin has rejected eight investments out of approximately 300 reviews conducted annually.
The decision follows ongoing efforts by Chancellor Friedrich Merz’s government to enhance regulatory scrutiny of foreign acquisitions, particularly those involving strategically important sectors. Merz, who took office in May last year, aims to balance attracting foreign capital to boost Germany’s economy with safeguarding critical infrastructure from potential vulnerabilities. The government is also preparing new legislation to strengthen investment screening measures.
Germany’s more cautious approach toward China has been reinforced by recent trade tensions, including Beijing’s restrictions last year on exports of rare earths and magnets, which contributed to production disruptions at German automotive plants. On Monday, Merz and French President Emmanuel Macron jointly proposed that the European Union deploy a “powerful trade instrument” to deter countries from using economic coercion as a geopolitical tool.
The port of Hamburg, Germany’s largest, has seen prior involvement from Cosco. In 2022, under the previous government led by Chancellor Olaf Scholz, Cosco secured a 24.9 percent stake in the Tollerort container terminal, following negotiations that limited the company’s share from its initial 35 percent bid due to security concerns. Scholz, a former mayor of Hamburg, supported the investment, but the decision reflected a compromise among multiple federal ministries wary of security implications.
Requests for comment from Cosco and the Chinese embassy in Berlin were not returned. The Chinese foreign ministry also did not immediately respond to inquiries.
The blocking of this acquisition underscores Germany’s increasingly vigilant posture in managing foreign direct investment linked to China, amid a broader European effort to shield critical infrastructure and industries from external strategic risks.