Germany allows controversial Chinese stake in Hamburg port

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 will be allowed 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 existence of a threat to public order and safety," said the ministry.

China's state-owned Cosco had initially sought a 35% stake and the deal would have automatically gone ahead if a compromise solution wasn't found this week. The agreement comes ahead of Scholz's visit to China next week as the first European Union leader to make the trip since November 2019.