The growing political uncertainty is affecting Chinese investments in Germany and Europe.

The growing political uncertainty is affecting Chinese investments in Germany and Europe.

According to a report by web.de, political scientist Eberhard Sandschneider talks about the reasons for China's growing influence in the German economy. Sandschneider believes that concerns about Chinese investments in Germany are exaggerated and emphasizes that Chinese companies have the same interest as all other companies: to diversify globally, to gain access to know-how and to open up new markets. He also emphasizes that German investments in China also played a strong role in the past.

The article asks the questions of what interest Chinese investors have in securing influence in Germany through direct investments and how Chinese investors appear in German companies. Sandschneider explains that Chinese investors are primarily interested in promoting the economic success of the companies they invest in, and that there is no overarching strategy that applies to all situations. He also emphasizes that allegations of political influence and blackmail are often based on ignorance and that Chinese investments in Germany give them access to the entire European Union market.

The article also discusses that political uncertainty in Europe and the deterioration of German-Chinese relations have led to a decline in Chinese direct investment in Germany. Sandschneider explains that Chinese investors are looking for a stable and secure investment environment and that political uncertainty is currently holding them back. The particular risks for Chinese investors arise from China's communist system, which raises concerns among Germans, but for which there is no reliable basis. Sandschneider also emphasizes that a possible military conflict between China and Taiwan would primarily raise political questions and that the economic impact would be global.

The article also discusses the risk of high interest rates, political dependence and a lack of environmental protection in connection with Chinese investments along the New Silk Road. Sandschneider explains that the countries concerned may not have sufficiently considered the consequences of Chinese investments and that such dependencies also exist with European or American investments.

Finally, it is noted that different European states have different China strategies, resulting in an inconsistent approach to China's economic influence on infrastructure and technology companies. The US's increasing decoupling strategy could increase pressure on Germany to choose between the Chinese and American markets.

Based on the information from the article, we can see that China's growing influence in the German economy is continuously increasing. Chinese investors are diversifying globally, seeking access to new know-how and opening up new markets. Concerns about political influence and the possibility of blackmail are seen as exaggerated. However, there are risks associated with political uncertainty and military conflict. There is no unified China strategy in Europe, and pressure from the USA for decoupling is growing.

It is important to note that this analysis is based on the information provided in the article and does not constitute a comprehensive market study or financial expertise. The actual impact on the market or financial industry may depend on various factors and requires further investigation and assessment.