German corporate bosses like Martin Brudermüller of chemicals giant BASF and Thomas Schäfer of carmaker Volkswagen have one less thing to worry about when it comes to China. So do their shareholders.
Germany’s coalition government, long divided among its parties on how far Berlin should go to insulate itself from its biggest trading partner, has finally published its firston the People’s Republic. Europe’s largest economy made it clear it’s now aligning more with Brussels and Washington on everything from supply chain risks and technology export controls to human rights concerns, after years of viewing China primarily as a lucrative market.
The final document does not shy away from what used to be viewed as taboo topics such as positions on self-governed Taiwan, which China claims as its own. Yet it has been shortened and watered down from a confidential draft in November drawn up by the foreign ministry led by the Greens' Annalena Baerbock. Back then one idea was to aggressively push for companies to disclose details of their China business, and even to stress-test their exposure, according to a draft seen by Reuters.
The compromise likely stems from the realisation that China is simply too strategic to quit quickly without inflicting significant pain. It is the world's top chemical market, for example, prompting Brudermüller to stress in the 2022 annual report that “not having a presence in large growth markets, such as China, would be a major risk for BASF”. The People’s Republic is also Volkswagen's largest market, accounting for around 40% of Volkswagen's global unit sales in 2022.
The likes of VW and BASF still face tricky times. If the EU sought to introduce tariffs on Chinese electric vehicles, for example, German carmakers might still be caught in the middle. Even so, executives will be relieved they can for the most part undertake China de-risking at their own pace.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Breakingviews - BP’s German wind option risks multiple blowbacksBernard Looney is going green again. After putting his retreat from oil on a slower trajectory earlier this year, the boss of $105 billion BP has reaffirmed his renewable power credentials by winning part of a 12.6 billion euros ($14 billion) auction to build 7 gigawatts of offshore wind off the coast of Germany. Yet the nature of the deal between Berlin, BP and fellow winning bidder TotalEnergies raises the risk of blowback.
Leer más »
‘I’m kind of pro-China’: Elon Musk sees role for China in writing AI rulesTwitter owner Elon Musk said Wednesday he has an optimistic outlook of China’s future and believes the communist country is ready to help write international rules for artificial intelligence.
Leer más »
Not-so-free speech: 'Pro-China' Elon Musk endorses AI governance alongside ChinaEntrepreneur Elon Musk has become a conservative hero via his purchase of Twitter and unveiling of prior censorship by the social media giant. Musk again underlined his appeal here on Thursday, tweeting his support for House Republicans in their oversight of speech issues.
Leer más »
Breakingviews - AXA’s XL cleanup would be logical, if belatedThomas Buberl is trying to clean up an old mess. The boss of $66 billion AXA bought XL Group back in 2018 to beef up its position insuring against storms and other catastrophes. At the time investors complained about two flaws in the $15.3 billion deal: it was overpriced, and bulking up in exposure to unpredictable hurricanes and wildfires risked making earnings more volatile. Buberl can’t do much about the first problem, but he may now fix the second – he’s considering flogging the most volatile unit of the business, the reinsurance arm that helps insurers manage their biggest risks.
Leer más »
Breakingviews - EU claims win in Illumina battle, may yet lose warThe bill has come due for Illumina’s decision to buy Grail now and apologise later. The $30 billion genetic test maker faces a record European Union fine of 432 million euros ($476 million) for closing the $8 billion deal in 2021, ahead of regulatory approval. Grail, which is developing new cancer screening methods, also faces a first-of-its-kind fine for disregarding the authorities, albeit a symbolic 1,000 euros given its status as the target.
Leer más »
Breakingviews - Shelved port deal will test Temasek’s private pushTemasek is having a bad weather week. The Singaporean investor’s wholly owned port operator PSA International is shelving plans to sell its 20% stake in CK Hutchison’s port business, per Bloomberg. It was always going to be hard to unwind the $4.4 billion bet it made in 2006 in Hong Kong tycoon Li Ka-shing’s empire but the challenges have grown since December when Temasek began exploring an exit.
Leer más »