Chinese investors in Germany face a dilemma – choppy seas on the way to Germany
„Saviour in the hour of need or dangerous dragon?“ Chinese companies’ image remains a topic of great tension: for some, Chinese companies represent a welcome source of capital or the ticket to the Chinese market, for others a threat in the (inter-)national competitive landscape or for one’s own technology. Today we focus on the negative aspects of Chinese companies’ image and on some background info and possible causes.
Chinese companies are often greeted with suspicion when they show interest in a German investment target. This often goes hand in hand with concerns about know-how drain, production relocation or even dismantling of the German target company. The Chinese investor does have influence on these concerns, which in most cases these days are unfounded. In practice, however, this is easier said than done, but even a small effort, if done smartly, can have a big effect. Is it intrinsically bad news for employees of a German company with a long tradition to learn that your new majority shareholder will be Chinese? Not necessarily, but if this learning goes hand in hand with uncertainty regarding the objectives and strategy of the new, often unknown investor, it can quickly create insecurity. The same holds for the general public. Therefore, clear articulation by the investor toward the employees and the media regarding the objectives of the investment will alleviate concerns and raise acceptance of the ownership change.
In most cases, Chinese investors do follow a long-term strategy aimed at growth and business expansion for the German company and its German locations. However, Chinese investors often lack awareness for public communication of these plans as well as effective communication channels and tactics – says Martin Brudermüller, spokesman of the Asia-Pacific Committee of the German Economy (APA): “They are not good at this. They still have to learn this.”
Source: EU-Info
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