Analyst Jacob Gunter told the German news agency in Berlin: “Cosco and its investment in the Port of Hamburg pose several risks to Germany’s security and economic interests.” Cosco is not just another multinational company simply looking for returns – it is a tool used by the Chinese government to achieve its strategic goals.
In September 2021, the Hamburg port logistics company HHLA and the Chinese terminal operator Cosco Shipping Ports Limited agreed on a 35 percent Chinese interest in the HHLA terminal at Tollerort (CTT) in the Hanseatic city. HHLA, which is largely owned by the Hanseatic City, hopes to strengthen Germany’s largest seaport, which has lost ground to its larger competitors Rotterdam and Antwerp in the past.
Political controversy has flared over whether Chinese involvement should be allowed, due to recent experiences with Russia and reliance on Russia’s gas supply. Economics Minister Robert Habeck warned of new dependencies, as did other politicians. Chancellor Olaf Scholz recently emphasized that nothing has been decided yet and that many questions remain to be answered.
A decision could soon be made within the federal government. Merics expert Gunter warned of long-term security risks. “First, there is the risk of influence — the more dependent Germany becomes on investments and deals with Cosco, the more influence Cosco and party officials can exert over Germany’s China policy.”
There is also a risk of dependency – Cosco sees Hamburg as a valuable hub for international shipping, handling in Northern Europe and as a hub for inland shipping along the Elbe through subsidiaries.
Given that Cosco can compete aggressively on price thanks to its protected domestic market and Beijing’s support, it will be a major challenge for German and European companies to compete with Cosco for market share by price. Gunter also pointed to the disparity of the reciprocal market access conditions. Cosco has much better access to Germany and the EU than European shipping companies to the Chinese market.
(SDA)