Friedrich Merz has warned German companies that investing in China is a ‘big risk’

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Friedrich Merz, the front-runner in the race to become German chancellor, has warned German companies of the “huge risks” of investing in China.

“I say to the representatives of the German economy that the decision to invest in China is a decision that involves a great risk,” the head of the Christian Democratic Party said in Berlin on Thursday. He issued the warning during a question-and-answer session after a far-reaching foreign policy speech that supported Berlin’s role on the world stage in favor of the EU and emphasized a transatlantic vision.

“My sincere request to all companies . . . “Limit the risk you take to avoid putting your own company at risk if it results in immediate disruption,” Merz said.

He added that China does not respect the rule of law in the West.

“If you take this risk, you should expect a big disruption. I’ve talked to small and medium-sized companies as well as very large companies. . . . If you take this risk and have to write off these investments from one year to the next, please under no circumstances come to the state . . . for help.”

This is a developing story.