picasaweb.google.com/rayloke1: Wolf Richter: China, the Number One Foreign Investor in Germany « naked capitalism

Wednesday, June 6, 2012

Wolf Richter: China, the Number One Foreign Investor in Germany « naked capitalism

Wolf Richter: China, the Number One Foreign Investor in Germany « naked capitalism

1 comment:

RAYLOKEJune 6, 2012 at 2:38 AM
Chinese companies are following the government’s five-year plan to buy into strategic areas, such as IT, finance, and the auto industry. They’re buying turnaround situations, like bankrupt automotive component supplier Saargummi, or healthy companies such as concrete-pump maker Putzmeister whose pumps made history in Chernobyl where they were used to dump concrete on the reactor, and in Fukushima where they were used to douse the reactors with water. And perhaps this fame induced Sany Group, a Chinese construction-equipment maker, to acquire Putzmeister in January 2012. And in a different kind of deal, the State Administration of Foreign Exchange (SAFE), which manages China’s foreign reserves, quietly accumulated stock in Munch Re Group, whose largest single shareholder, with 10.2%, is Warren Buffet’s insurance empire. By August 2011, SAFE’s stake exceeded the 3% limit that triggered disclosure.

The question is still open if Chinese executives can adjust their management methods to German business culture—though this is probably no more difficult than what German managers have to do in their ventures in China. And the fear persists that Chinese investors only seek intellectual property and technologies, and once they have acquired and repatriated them, that they will close German production locations. But Chinese companies also invest in Germany in order to gain access to the European market, which would indicate a desire for a permanent presence.
ReplyDelete
Replies

Subscribe to: Post Comments (Atom)