(Yicai Global) Feb. 2 -- While Chinese firms have put an increasing amount of money into Germany in recent years, less than 1 percent of investments in that country come from them and they do not pose a threat to its economy, China's Ministry of Commerce said in response to a recent report that German, French and Italian manufacturers are working on a proposal to curb China-led acquisitions in Europe.
Chinese groups made investment decisions based purely on market considerations, and their deals brought in capital, created jobs and enabled European businesses to expand to Asian markets, MOFCOM spokesperson Gao Feng said at a press briefing yesterday.
Executives and employees of companies in Germany have been generally satisfied with Chinese investors, who have helped turn around some loss-making businesses, Handelsblatt reported.
The Chinese government has serious concerns about the European Union's legislation on foreign investment review and hopes that European governments including Germany's can take an objective attitude toward enterprises' market-based business decisions, Gao said, adding that state leaders should uphold the consensus that they concluded at the World Economic Forum in Davos last week to combat trade protectionism.
Chinese firms' spending on acquisitions of German businesses rose 9 percent annually to a record USD13.7 billion last year, per Ernst & Young statistics. The deals included CK Asset Holdings Ltd.'s takeover of energy measuring solutions provider ISTA International GmbH and HNA Group Co.'s purchase of a controlling stake in Deutsche Bank AG.
During an interview with Die Welt last month, Matthias Machnig, state secretary of the German Ministry for Economic Affairs, called on the EU to introduce new legislation to stem acquisitions by Chinese companies in the face of a sharp rise in the number of Chinese backer taking an interest in Europe.