The boss of Germany's BASF warned Wednesday against "China bashing" and said the chemicals giant would push on with major investments there, despite concerns about growing economic dependence on the Asian giant.

The company is building up its business in Asia as its European operations come under pressure, particularly due to the surging price of energy triggered by the Ukraine war.

But there are worries about German firms becoming too economically reliant on authoritarian China, as the Europe's economic powerhouse smarts from years of over-dependence on Russian gas imports.

CEO Martin Brudermueller insisted BASF's expansion plans in the country, where it is building a 10-billion-euro ($10 billion) chemical complex, had not changed.

While recognising there are "concerns" about what happens in China politically, he said: "We have business relations which are important for the German economy... We have an extremely profitable China business."

The firm had asked "critical questions" about its Chinese investment, but decided that it was "a good opportunity," he said.

Speaking more broadly about economic ties, he urged: "Let's move away from China bashing."

Germany needed to "look more at ourselves... at our weaknesses," added the chief executive, who will be among a business delegation accompanying Chancellor Olaf Scholz on a visit to China next week.

His comment's came after a row erupted in Germany's coalition government about whether to allow a Chinese firm to buy a stake in a Hamburg port terminal.

Scholz ultimately defied calls from six ministries to veto the sale over security concerns, instead permitting the company to acquire a reduced stake.

Brudermueller also defended the forthcoming China trip: "I think it is a good signal in this moment to go there."

Earlier this month, BASF unveiled a plan aimed at cutting costs by 500 million euros, which will be focused on Europe and particularly Germany, and will include job losses.

On Wednesday, Brudermueller said costs would have to be cut "permanently" in Europe, citing a weakening regional market and surging energy costs.

BASF reported a net profit of 909 million euros in the third quarter, down from 1.25 billion during the same quarter last year.

sr/mfp/rl

BASF

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Germany allows controversial Chinese stake in Hamburg port
Berlin (AFP) Oct 26, 2022
Germany's coalition government on Wednesday allowed a Chinese firm to buy a reduced stake in a Hamburg port terminal, after Chancellor Olaf Scholz resisted calls to ban the controversial sale outright over security concerns. Under the compromise agreed by Scholz's cabinet, Chinese shipping giant Cosco has the go-ahead to buy a stake "below 25 percent" in the Tollerort container terminal owned by HHLA, the economy ministry said in a statement. "The reason for the partial prohibition is the existe ... read more