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Friedrich Merz, the frontrunner in the race to become Germany’s chancellor, has warned German companies about the “great risk” of investing in China.
“I say to all representatives of the German economy that the decision to invest in China is a decision involving great risk,” the Christian Democratic party chief said in Berlin on Thursday. He issued his warning during questions and answers after a far-ranging foreign policy speech that highlighted a pro-EU, Atlanticist vision of Berlin’s role on the global stage.
“My heartfelt request to all companies . . . limit the risk you take in order to avoid endangering your own company if it triggers an immediate write-off,” said Merz.
China was not abiding by western rule of law standards, he added.
“You must expect major disruptions if you take this risk. I’ve talked to a whole range of small and medium-sized and also very large companies . . . If you take this risk and if you have to write off these investments from one year to the next, then please do not, under any circumstances, come to the state . . . for help.”
This is a developing story