ándor Czinkóczi
KÜLFÖLD
Thursday, October 27, 21:37
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COMMENTS
Another German company could come under Chinese influence, with the German government now looking into the sale of Elmos, a chipmaking firm in Dortmund. Although Elmos would be bought directly by Sweden's Silex, it is actually a subsidiary of China's Sai MicroElectronics. Although the investigation is still ongoing, Handelsblatt quotes government sources as saying that the transaction is likely to be approved. The paper says that they are more lenient in this case because Elmos' technology is considered obsolete, so there is no fear that the technological know-how will go to the Chinese.
Elmos, which mainly makes chips for car makers, announced last year that it was selling its Dortmund plant. Chinese-owned Silex would buy the plant and its stock for €85 million.
However, the Federal Office for the Protection of the Constitution no longer considers the sale a good idea, as the Chinese would not only acquire the know-how, but also the production capacity. China usually buys into an industry in a targeted way in order to exert pressure on the country concerned.
In Germany, the debate on Chinese influence has recently intensified, with the government recently allowing the Chinese state-owned Cosco to take over the operation of the port of Hamburg. After considerable internal debate, the German government coalition only made the condition that only 24.9 percent would be acquired, instead of the 35 percent previously planned. In addition, the Chinese shareholder would not have veto rights on strategic and business decisions. The deal has even prompted German President Frank-Walter Steinmeier to warn against unilateral dependence on China (via Spiegel).
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