The Risk of Investing in the CCP gives Germany a Lesson

A Volkswagen investment project in China failed to obtain a loan guarantee from German Government. This is the first time the German Government refused to provide a guarantee for a company’s overseas investment plan due to human rights ground. It is undoubtedly a serious warning sign for the German business community, which attaches great importance to the Communist China’s market.

In fact, the investment does not involve the company’s factory in Urumqi, Xinjiang, but to renovate Volkswagen factories in other parts of the communist China. However, the original parts produced by other factories may still be supplied to the Xinjiang Volkswagen factory for use, so the federal government refused to provide guarantees for this investment plan.

The above decision of the federal government has caused a great stir in the economic circles, which would mark a major turnaround in German economic policy. Many people in the economic world are now worried that the German Government will no longer have a strong backing for them. The signal sent by Green Party Minister of Economics Harbeck indicates the Chinese Communist Party (CCP) is a dictatorship and authoritarian country, with the integration of government and enterprises, and the leadership of the CCP, including foreign companies of course. Anyone who wants to invest and build a factory near the Xinjiang “re-education camp” where human rights have serious problems can only bear all the risks.