The German government has officially blocked an investment plan by a Chinese state-owned company to acquire Germany's largest seaport logistics group, a decision that underscores Berlin's hardening stance toward Beijing under Chancellor Friedrich Merz.
The British Financial Times reported that the decision was approved by the German cabinet on the 7th. Previously, the authorities conducted strict scrutiny on the plan of China's state-owned shipping giant, China Ocean Shipping Group (Cosco), to acquire 80% of the shares of the freight forwarding company "Konrad Zippel Spediteur". This medium-sized logistics group mainly operates at the Port of Hamburg in the North Sea.
The move comes as Berlin prepares to enact new laws to further strengthen its foreign investment screening mechanism. At the same time, this also reflects Germany's increasing preparedness against China; in recent years, China's cheap electric vehicles and steel products have had a serious impact on the domestic and traditional export markets of German manufacturers.
Merz just made a joint proposal with French President Emmanuel Macron on the 5th, calling on the EU to adopt strong trade tools to deter other countries from imposing economic coercion. It is widely believed that this move is to counter Beijing's export controls on rare earths and magnets last year, which forced some German car factories to suspend operations due to shortages of raw materials.
Since taking office in May 2025, Merz has tried to strike a balance between attracting foreign investment to revive Germany's stagnant economy and strengthening regulations to defend critical infrastructure and reduce potentially harmful economic dependence.
A spokesperson for the German Economy Ministry confirmed in an email to the Financial Times that the decision to reject the COSCO Shipping acquisition was "based on security considerations." "This acquisition will deepen Germany's external dependence and jeopardize the resilience of the German and EU supply chains."
Neither COSCO Shipping nor the Chinese Embassy in Berlin responded, and the Chinese Foreign Ministry did not immediately comment.
The German Ministry of Economic Affairs pointed out that Zippel Group specializes in inland container transportation, and its main business is to connect Germany’s largest port park with the country’s eastern states. The Ministry of Economy said that Berlin authorities have rejected eight foreign investment cases out of about 300 cases reviewed each year. The Ministry of Economic Affairs reiterated that Germany still welcomes foreign investment, but current regulations allow authorities to conduct reviews on a case-by-case basis. "The core criterion for review is whether the acquisition may endanger public order or national security."
In 2022, the three-party coalition government led by Social Democratic Prime Minister Olaf Scholz allowed COSCO Shipping to acquire a 24.9% stake in Hamburg Port & Logistics' (HHLA) Tollerort container terminal, but the Chinese state-owned enterprise initially sought a 35% stake. The deal was the result of a compromise between former Hamburg Mayor Scholz, who supported the investment, and the Ministry of Economy, Foreign Affairs, Defense and the Interior Ministry, which strongly opposed it on the grounds of national security. The German government ultimately strictly limited the Chinese shareholding limit to less than 25%.
