Unlock Editor’s Digest for free
Roula Khalaf, editor-in-chief of the FT, selects her favorite stories in this weekly newsletter.
Friedrich Merz, favorite in the race for the German chancellorship, has warned German companies of the “great risk” involved in investing in China.
“I tell all representatives of the German economy that the decision to invest in China is a decision that carries great risks,” the leader of the Christian Democratic Party declared in Berlin on Thursday. He issued his warning during questions and answers after a wide-ranging foreign policy speech that put forward a pro-European and Atlanticist vision of Berlin’s role on the world stage.
“My sincere request to all businesses. . . limit the risk you take to avoid putting your own business at risk if it triggers immediate delisting,” said Merz.
China does not meet Western standards for the rule of law, he added.
“You should expect major disruption if you take this risk. I spoke to a whole range of small and medium-sized companies, but also very large companies. . . If you take this risk and if you have to amortize these investments from one year to the next, then under no circumstances should you contact the State. . . for help.
This is a developing story