Germany wants to strengthen its economy through cooperation with China. Therefore, the German government decided to abandon licensing of Chinese investments, reports The Wall Street Journal.
Germany is considering abandoning the previously announced idea of government inspections of Chinese investments. Berlin believes that licensing could harm efforts to revive Germany's economy.
A draft bill on investment restrictions seen by the WSJ proposed to give the government the power to check foreign investments for security risks. The German government would be able to review investments, including control over industries such as quantum technology, complex semiconductors, artificial intelligence, and critical infrastructure.
"The government also tried to include a provision that would allow it to review cooperation projects between German research institutions and foreign partners in critical areas," the newspaper notes.
The WSJ writes that these initiatives were probably rejected, although experts insist on them to effectively protect the economy and infrastructure.
Berlin's decision was partially confirmed by the German government. They stated that it is important not only to protect the economy but also to remain "open to foreign investment."
If the restrictions are not approved, Germany could become one of China's largest partners.
China is a partner of Russia
China has remained neutral in the face of Russia's war against Ukraine. Beijing continues to trade with Moscow. Chinese companies supply Russia with dual-use goods that can be used to produce various weapons.
In addition, China and Russia declare "friendship without borders." Although Western media believe that China does not support the actions of Russian dictator Vladimir Putin.
