German economic circles are worried about US restrictions on investment in China
10.08.2023
The German economic circles are worried about US President Biden’s signing of investment restrictions on China. An expert on foreign trade issues at the Federation of German Chambers of Industry and Commerce said that the EU should “coordinate closely with the United States to prevent the US investment restrictions from having a negative impact on the European economy.”
(Deutsche Welle Chinese website) German economic circlesU.S. President Joe Biden signs investment restrictions on ChinaSkeptical, and worried that the EU may also introduce similar regulations, which will have adverse effects. Melanie Vogelbach, an expert on foreign trade issues at the Federation of German Chambers of Commerce and Industry (DIHK), said in an interview with Reuters on Thursday (August 10) that there are already extensive export regulations for German companies. “Investment review mechanism” will lead to over-regulation.
Vogelbach said: “So from the perspective of free capital movement, the EU should also avoid implementing foreign investment screening mechanisms.” She said that the EU should “coordinate closely with the United States to prevent the US investment restrictions from negatively affecting the European economy. “.
Vogelbach pointed out that the German economy is closely linked to the international economy. A quarter of jobs in Germany depend on exports, and even half of jobs in industry are related to exports. She emphasized that, therefore, the goal of the European foreign trade strategy must be to accelerate the opening of global markets and investment locations, rather than countries leading foreign trade. Only in this way can enterprises promote the diversification of supply chains and strengthen their competitiveness.
She added: “After many conversations and communications with German companies, we found that companies attach great importance to de-risking.”
U.S. President Joe Biden wants to ban U.S. companies from investing in sensitive technology in China. Yesterday (August 9) he signed an executive order authorizing the Treasury Department to fully prohibit or partially restrict American companies from investing in China in certain fields, including semiconductors, microelectronics, quantum information technology and some artificial intelligence.
The German Wholesalers and Exporters Association (BGA) believes that German companies are unlikely to intervene in the dispute. “I would expect German companies to proceed cautiously because in these highly sensitive high-tech areas German companies often work with US partners, or at least with US partners,” Michael Alber, the association’s chief economist, told Reuters. Connected.”
“No one wants to take the risk of this kind of cooperation because the US market is too important. In addition, there is the issue of ‘long-arm jurisdiction’,” he said. German companies could be sanctioned by US law if doubt arises.
recently announced by the German governmentNew China StrategyCalling on German companies to reduce the risk of doing business with China is also called “de-risking”.
A spokesman for the European Commission said in response to an emailed query from Reuters: “We are in close contact with the U.S. government and look forward to continuing to cooperate on this issue. There is a shared interest in the use of scientific and technological advancement expertise to enhance military and intelligence capabilities that undermine international peace and security.”
The European Commission will present an initiative on this topic by the end of this year.
(Reuters)
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2023-08-10 11:02:12
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