chinese investments germany

Chinese Investments

in Germany, one

 

Vocabulary

flag investor strengthen
pump concrete headquarters
CEO acquire launch (2)
admire imagine according to
fear dynamic momentum
forklift takeover appreciate
crisis stake (3) mutually beneficial
gain inject (2) competitor
access precision employment
vanish executive other way around

 
 
 
 
 

 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Video

 
 
 
 

Transcript

German precision engineering increasingly the target of Chinese investors. German and Chinese flags now fly outside the headquarters of Putzmeister, a leading producer for concrete pumping equipment, purchased last year by Sany Heavy Industries of China.

Liang Wengen, CEO, Sany Heavy Industries: “I’ve admired Putzmeister’s development for twenty years now. And I’ve come here to tell you that the real Putzmeister is even better than I imagined.”

More and more Chinese firms are acquiring especially small and medium-sized German industrial companies.

A hundred-and-fifty-eight businesses from China launched investment projects in Germany in 2011, according to Germany Trade and Invest.

That’s more than the United States.

At Putzmeister, fears of a Chinese takeover quickly vanished, the CEO says.

Norbert Scheuch, CEO Putzmeister: “Of course, there were fears in the beginning.

But I think now employees are happy. Because we can now see, they want to move forward, and that Sany really appreciates Putzmeister, and that we will remain an independent company, with Putzmeister executives in the Sany Company.”

Another example is Kion, a world leader in forklift production, where Chinese competitor Shangon Heavy Industries recently acquired a large stake.

Experts say, like almost no other partnership, German-Chinese trade relations are mutually beneficial, with Chinese firms gaining technological knowledge and access to the European market, while injecting German companies with much needed cash for investments and growth.

Ilja Nothnagel, German Chamber of Commerce: “There is no fear anymore about foreign-direct investments in Germany because we have seen the crisis last year that foreign investors do keep investments and also employment in Germany. So the investments are here to strengthen the Germany country and economy.”

German investment in China is still much larger than the other way around. But both are growing fast, and two of the most economically dynamic countries in the world look to benefit from each others’ momentum.

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Questions

1. Chinese investors especially like to buy banks and insurance companies. True or false?

2. Do they have mergers with large, multinational corporations?

3. Have German attitudes towards Chinese takeovers changed or remained the same?

4. The Chinese have replaced German managers, engineers and technicians with Chinese managers, engineers and technicians. Is this right or wrong? Why did they retain the original workers?

5. Are the foreign acquisitions a win-win situation? In what ways is it beneficial to both sides?

6. During a recession or economic downturn, were workers laid off?

7. Only Chinese investors are buying up German companies. Is this correct or incorrect?

 

A. Is there much foreign investment or purchasing in your country?

B. What do workers and citizens feel about foreign acquisition of local companies?

C. Do investors from your country purchase companies abroad?

D. Are you or your company involved with Chinese business?

E. What will happen in the future?
 
 
  
 

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