Chinese Takeovers: Germany tougher stance on Chinese investments

World
Europe

Pressure is growing in Germany for a tougher stance on state-backed Chinese investments in Europe. CGTN's Guy Henderson reports from Frankfurt Hahn.

Hildgard Kaefer hopes Chinese investment could transform the German municipality she works for.

Aside from running this shop, Kaefer is the vice president of the Koblenz Chamber of Commerce.

The region's lifeblood is the tiny Frankfurt-Hahn Airport: and it's now in the hands of a very big Chinese company.

HILDEGARD KAEFER, VICE PRESIDENT KOBLENZ CHAMBER OF COMMERCE "My hope is that Germans will find good jobs — that companies in the region will get contracts, for example construction companies. And that Chinese people will come to our shops and buy our goods, go to the restaurants to eat and that this region will bloom."

Down the road, hotel owner Michael Willwerth voices a worry though: one that's part of a broader debate reaching right across Germany and beyond.

MICHAEL WILLWERTH HOTEL OWNER "We don't know much about this company – it's a Chinese company and in Europe right now, you've got a lot of Chinese companies. Sometimes good, sometimes bad and right now, we don't know what we got."

When the parent company of Hainan Airlines confirmed the airport's multi-million dollar purchase last year as part of its European expansion, media were welcomed.

Now, not so much: it has been a difficult few months.

GUY HENDERSON FRANKFURT HAHN "The company that bought a stake in this airport is called HNA Group – which just happens to be one of the most prolific buyers of foreign firms in the whole of China. It's come under increasing scrutiny in Europe in recent months. At such a sensitive moment for Chinese investments on the continent, the firm declined our request for an interview."

After a multi-billion dollar global spending spree, HNA is now shedding assets to firm up its finances.

Most recently, selling its stake in Hilton Hotel Group to name but a few.

That has helped fuel calls for tougher European transparency laws.

Some influential German politicians hope more regulation won't be needed.

JOACHIM PFEIFFER CHRISTIAN DEMOCRATIC PARTY "We saw a lot of investments where we didn't know: was it a private company, or even if it was a private company was it state financed or backed or linked – whatever. So I think it is in the Chinese interest to bring more transparency or that will also have a response."

As China continues it's economic opening-up. Here's one small German town hoping that might spare them more surprises. GH, CGTN, Frankfurt Hahn.