German think tank: 'China can overrun us' with acquisitions

Authorities should take a closer look at acquisitions of German companies by Chinese investors in order for Germany to stay ahead in key industries, according to a Berlin-based think tank.

"It's the last moment to act. China could can overrun us," Mikko Huotari, who heads the Chinese relations programme at the Merics Institute, told dpa.

"We've already seen it happen in solar energy. It's a pattern that could be repeated in multiple other industries - such as the robotics sector," he said.

For years, industry experts in Europe's largest economy have voiced concerns about a series of acquisitions by often state-backed Chinese companies aimed at key German business sectors such as the 2016 purchase of German robotics maker Kuka by China's electrical appliance manufacturer Midea Group.

Berlin tightened investment rules last year to protect strategically important industries as concerns persist that Chinese companies could obtain German technological know-how through takeovers.

Under the new regulations, large acquisitions from outside the EU or member states of the European Free Trade Association are evaluated to establish whether they represent any risk to public policy or security.

"The strategic industrial policy of China makes it necessary to have a much closer look," Huotari said, noting that China isn't a normal competitor.

China uses state subsidies and large funds to carry out coordinated industrial politics, he said.