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No bad experiences from employee perspective on Chinese investors in Germany: Study
Last Updated: 2014-03-25 20:22 | Xinhua
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The increased entry of Chinese investors in the German company has so far no negative effect on employment, wage and worker's participation, as a study of Hans Boeckler Foundation announced on Tuesday.

As works councils and trade unions in Germany has managed to conclude agreements with Chinese companies on collective bargaining coverage , investments and job security, the Chinese investors were so far more co-operative than many financial investors, said the study.

In 2011, investors from China took over the majority or significant portions of eleven major companies in Germany that were joined by seven more companies alone in the first half of 2012, according to the study.

"The interest of Chinese investors in German takeover targets has awakened," said Oliver Emons, an economist at the Hans Boeckler Foundation.

The latest acquisitions of Chinese investors in Germany concentrate on certain sectors such as machinery and transport equipment or chemistry.

In addition to the interest in the know-how of German companies, Emons also added other reasons for increased Chinese involvement in the German economy, such as the exploitation of the enormous foreign exchange reserves and the access to the local market.

He also noted that investors from China no longer access only bankruptcies, but now also take over healthy companies with temporary financial difficulties.

"Until now, there were no litmus test in any acquired companies, or a severe economic downturn, which brings the German subsidiary or the Chinese parent company in trouble," said Emons.

From the perspective of employees in Germany, the study said that the workforces of acquired businesses did better so far with Chinese owners than other workforces with financial investors who are only on short-term rate of return.

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