There was a lot of resistance in the German Bundestag, in six ministries and even in the cabinet. Nevertheless, Germany gave its consent today: Part of the Port of Hamburg is to be handed over to Chinese hands. Chancellor Scholz played a crucial role in this controversial deal.

The Chinese state-owned company Cosco, the fourth largest container shipping company in the world, will acquire part of the terminals. The company thus secures handling capacities in Hamburg and the state-owned company gains control over a larger part of the trade chain on the sea route with Germany.

The port of Hamburg also wants to complete the deal. China is its main trading partner, accounting for a third of all containers that pass through it. With the purchase, Cosco promises to conduct more trade through Hamburg. If the sale didn’t go through, the shipping company threatened to call at competing ports in Antwerp and Rotterdam, for example. Cosco is already a partner there.

political leverage

But it is about more than just economic interests. Opponents of the agreement point out that this will give China political leverage. Should there be a conflict between the German and Chinese governments, trade with the port, which is so important for Germany, could turn out to be a weapon.

The war in Ukraine made it clear in Germany that trade cannot be a bridge, but a weak point. For years, the Germans bought cheap Russian gas and even sold key gas storage facilities to the Russians. But since the war in Ukraine, the two governments have been diametrically opposed, the gas trade is being exploited as political pressure, and Germany’s dependence is costing the country a lot of money.

The resistance was great

Recently it became clear that there is great resistance to the sale of part of the port of Hamburg to the Chinese company Cosco. Six ministries have spoken out against the deal, as have top politicians from the governing parties Greens and FDP and the security services. The European Commission also thinks it’s a bad idea, German media reports.

The Ministry of Economics had previously carried out a risk analysis for the sale. The result is secret but was seen by the German newspaper FAZ. He reports that the ministry advises against the sale because the risk is too high.

Scholz wants to assert himself

Because the infrastructure is important for Germany, the government could stop the sale. Only, reported the German broadcasters NDR and WDR, Chancellor Olaf Scholz wanted to push through the deal. Scholz himself was mayor of Hamburg for many years.

In order to block the sale, the chancellor must officially put the issue on the cabinet’s agenda. That was until October 31st. But Scholz hasn’t done it to this day.

The result is now presented as a kind of compromise. Cosco originally wanted to buy 35 percent of the terminal, but the federal government will now partially ban this. Only if the Chinese state-owned company buys 24.9 percent will the government not block it. It is not known what Cosco thinks of this, but it is generally assumed that this “solution” was discussed in collusion with the Chinese.

With a share of less than 25 percent, Cosco would have less say in the port and no right of veto, for example. But that doesn’t eliminate all concerns.

At least against it

Many opponents are against a sale at all. In their risk analysis, officials from the Ministry of Economics point out that in the past, Cosco has often first taken a minority stake and then slowly tries to gain more control, according to the FAZ.

The fact that the sale is now taking place seems to be mainly due to the unprecedented commitment of Chancellor Scholz. Perhaps that’s also the reason why so many politicians have spoken out so openly against the sale, writes the German weekly Der Spiegel. “If you look back in a few years and possibly wonder how it was that Germany surrendered to China, it should be clear that the chancellor made this decision alone.”