The European Commission warned Germany months ago against Chinese investment in Hamburg's port, a source close to the matter told AFP on Saturday, as Chancellor Olaf Scholz faced criticism for reportedly backing the transaction.

The source confirmed information in a report by the Handelsblatt daily that the EU executive had in spring given Berlin a thumbs-down to Chinese shipping giant Cosco taking a 35-percent stake in the port under a deal agreed last year but not yet authorised.

The commission was worried that sensitive information about activity in the port -- the third busiest in Europe -- could be relayed to China's government.

Its recommendation was non-binding, with Germany having the final say on the deal.

German broadcasters NDR and WDR on Thursday reported that Scholz's office is planning to approve the deal despite opposition from six different ministries in Germany's coalition government.

According to the report by NDR and WDR, the deal would effectively be approved automatically if the government does not intervene by the end of this month.

Scholz, who was mayor of Hamburg between 2011 and 2018 before becoming vice chancellor and then chancellor, announced after attending an EU summit on Friday that he would visit China in November.

He said that "nothing is decided" about the Chinese investment, but noted there were Chinese stakes in other European ports.

The EU's stance against China, however, has hardened since those other stakes were made.

At the EU summit, leaders agreed they did not seek confrontation with China, wanting its cooperation on climate change and other issues.

But they also expressed discomfort at China's increasing assertiveness in many areas, including in trade, and its bond with Russia, which is waging war in Ukraine.

European Council President Charles Michel said after Friday's summit that there must be "more reciprocity and rebalancing in particular in the economic relations between China and the EU".

Chinese President Xi Jinping on Saturday gathered support from his Communist Party that will enable him to sail through to a third term. Xi previously abolished the presidential two-term limit, paving the way for him to rule indefinitely.

EU not looking for 'systematic confrontation' with China
Brussels (AFP) Oct 21, 2022 - EU leaders said Friday they would stand up for their principles and independence in relations with China, but warned against being drawn into confrontation and a breakdown in ties.

"This discussion showed a very clear will to avoid being naive, but neither did we want to embark into a logic of systematic confrontation," summit host and EU Council president Charles Michel said.

During their Brussels summit, the 27-nation bloc held three hours of strategic talks on its approach to China as President Xi Jinping tightens his grip over an ever more assertive Beijing.

Torn between the desire to access China's vast markets and condemnation of its rights abuses and aggressive regional policies, the EU has struggled to fashion a cohesive stance towards Beijing.

"We will always be firm in standing up to defend our principles, democracy, fundamental freedoms," Michel said.

"We believe that we must be committed to bringing more reciprocity and rebalancing in particular in the economic relations between China and the EU."

Michel said that the EU remained open to cooperation with China on major international issues such as climate change and health.

He insisted that the bloc has its "own model to develop" at a time of intensifying rivalry between China and the United States.

EU executive head Ursula von der Leyen said Beijing was "continuing its mission to establish its dominance in East Asia and its influence globally".

She also warned about the close ties between China and Russia as Moscow has rocked the international order by launching its war on Ukraine.

"These developments will affect the EU-China relationship," von der Leyen said.

- Scholz visit -

Chastened by the chaos caused by its reliance on Russia for energy, the EU is keen to ensure it doesn't fall into the same trap by becoming dependant on China for critical raw materials and technologies.

"Obviously, we have to be very vigilant when it comes to dependencies. And we've learned our lesson," von der Leyen said.

The EU is seeking to present a united front over China -- but that has been clouded by the differing economic interests of its members.

Olaf Scholz, the leader of the bloc's economic powerhouse Germany, announced Friday after the summit that he will take a government delegation to China next month.

It will be the first visit by an EU leader to the country since November 2019.

"There is great unanimity," Scholz said. "No one is saying that we can no longer invest there, that we can no longer import from China."

But other leaders were wary about Scholz's upcoming visit.

"With China it is the same as with Russia, it is in their interest that we are divided," said Estonian prime minister Kaja Kallas.

"It's in our interest that we are united and talk with one voice."

The EU's discussion on China came as a top US general warned Washington must be ready to respond to a potential invasion of Taiwan as soon as this year.

Michel refused to make any "prophecy in the military field".

The EU's diplomatic service, in a strategy document this month, urged member states to warn China of "possible consequences" if it seeks to take control of Taiwan through force.

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Scholz under fire over alleged support for China project
Berlin (AFP) Oct 20, 2022
German Chancellor Olaf Scholz faced a barrage of criticism on Thursday after a media report accused him of planning to push through Chinese investment in a Hamburg port despite grave reservations in his government. Chinese shipping giant Cosco is due to take a 35 percent stake in a container terminal in Hamburg, in a deal agreed last year but not yet authorised by the federal government. German broadcasters NDR and WDR on Thursday reported that the Chancellery is planning to approve the deal des ... read more