German Chancellor Says, "Acquisition of Chinese Companies' Factories... Not a Matter for Politics to Interfere"

*This content was translated by AI.

Amid deepening crisis in Germany's automotive industry, German Chancellor Friedrich Merz has taken a proactive stance on the potential acquisition of local German factories by Chinese vehicle manufacturers.

At a press conference held in Berlin on the 15th local time, Chancellor Merz signaled that he does not oppose the idea of Chinese companies acquiring automobile plants struggling with management issues within Germany. However, he drew a clear line by stating, "The final decision rests with individual companies and their shareholders; it is not a matter for politics to decide." He further emphasized that such measures should be viewed as temporary "stopgap solutions" rather than fundamental remedies for independent structural problems.

Currently, the automotive industry, a symbol of German manufacturing, is experiencing a severe downturn due to slowing global demand, tariff barriers imposed by the United States, and intense competition from China. Amid widespread job cuts across the sector, Volkswagen CEO Oliver Blume has raised the possibility of an additional restructuring involving up to 50,000 more layoffs beyond existing reduction plans. As factory utilization rates plummeted, CEO Blume began exploring options to revive production capacity, including bringing Volkswagen-exclusive models originally developed for the Chinese market back to European factories for direct manufacturing.

In response, regional political figures such as Lower Saxony State Premier Olaf Lies and Saxony State Gyeong Je (Minister) Dirk Panter have actively supported the introduction of Chinese models to restore factory operations. Indeed, Chinese electric vehicle manufacturers like BYD, riding a wave of growth, are actively seeking production bases to accelerate their expansion into Europe. Already, Stellantis, another European manufacturer, has established a joint venture with China's Dongfeng Motor to share production and engineering capabilities.

At the same time, Chancellor Merz raised his voice strongly criticizing China's unfair trade practices. He stated that China is intentionally undervaluing the yuan by approximately 25% to 30% to secure unfair export competitiveness.

Chancellor Merz said, "It is unacceptable for Germany to compete with partners whose currency values are significantly undervalued from a European perspective." He stressed that unless this issue is rectified, Germany will inevitably suffer disadvantages due to the influx of Chinese products heavily subsidized by massive state aid. Indeed, Germany's trade deficit with China has been rapidly widening across all sectors, including machinery, chemicals, and automobiles.

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*This content was translated by AI.