By Hu Weijia in Global Times, Oct 18, 2016
The author is a reporter with the Global Times.
Germany is mulling protecting its local high-tech companies from investors in non-EU countries by giving wide-reaching rights to the government to prohibit company acquisitions, media reports said recently. The news came as a recent rush of Chinese investment into Germany’s high-tech sectors raised eyebrows among German society.
Chinese home appliance manufacturer Midea’s recent move to acquire German robotics maker Kuka, an iconic company that has helped enhance Germany’s competitive edge in industrial automation, attracted a lot of attention in both Germany and China. While Chinese businessmen talked about the high price Midea had paid as well as the compromises made by the Chinese firm to acquire Kuka, it seems that the German government felt prompted to set new obstacles for takeovers of Germany’s pioneering technological and research firms by Chinese enterprises, especially State-owned and partly State-owned companies.
Chinese businessmen and policymakers should have a clear understanding of the increasingly challenging situation facing Chinese high-end manufacturing enterprises’ international expansion.
China is putting forward its strategy of “Made in China 2025,” similar to Germany’s concept of Industry 4.0, and some senior German officials have suggested the two countries could enhance their cooperation in high-end manufacturing sectors to help raise China’s industrial manufacturing to a new level. Some Chinese people had previously thought this represented the mainstream voice of German society, but now such words sound more like diplomatic rhetoric. Overseas mergers and acquisitions by Chinese companies have come under more careful scrutiny by the German government.
Chinese enterprises must be prepared for frustrations when seeking more overseas investments in high-end manufacturing sectors. Besides requirements such as abiding by local laws and fulfilling social responsibilities, challenges in terms of the ideological battlefield are always faced by Chinese companies. A lot of people in overseas markets have massive concerns about Chinese companies taking over leading tech companies and suspect that the Chinese government might be involved behind the scenes.
Given these issues, the process of Chinese enterprises seeking overseas investments will not be plain sailing. It is going to take some time for the West to change its bias toward Chinese enterprises, and China needs to get ready for this. While promoting mutual opening up, Chinese policymakers should further encourage local companies to invest more in self-dependent innovation, rather than acquiring technology through overseas mergers and acquisitions.
Foreign countries, Germany included, should also be aware that their local people are losing job opportunities if they shut the door to Chinese investment. http://www.globaltimes.cn/content/1011999.shtml
POK/G-B SCENE
PPP plans protest in GB against centre
GILGIT: The opposition Pakistan People’s Party local leaders on Monday announced to start a protest movement across Gilgit-Baltistan from Nov 1 against the federal government for allegedly denying GB people their due rights.
The decision was taken at a meeting chaired by PPP regional president Amjad Hussain at the party’s secretariat in Gilgit. PPP vice-president Jamil Ahmed and other office-bearers, including Sadia Danish, Javed Hussain, Mohammad Musa, Aftab Haider and party representatives from all the 10 districts of GB attended the meet, according to a press release.
The PPP leaders said they had decided to hold a demonstration on the GB’s Independence Day on Nov 1 at Danyor Gilgit to start the protest movement against the central government’s ‘apathy’ to giving the region its ‘due’ share in CPEC, and ensuring them land ownership and constitutional rights.
http://www.dawn.com/news/1290679/ppp-plans-protest-in-gb-against-centre
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