Some people find it amusing the hordes of chinese out conquering germany with their cameras. But some of these visitors have their eye on very specific Things Technology and machines made in germany and theyre not here for the perfect souvenir snapshot china has come to shop and its buying up dozens of German Companies. To be my son most of our acquisitions are associated with Strategic Interests going to the turkish interest that china wants to shake its image as a producer of cheap goods and become a leader in Global Markets in just one year it invested more than ten billion euros in germany. From im just going to invest in germany in the us its a win win situation as i know when. When when what about job security. Is life the initial reaction is shock. Some experts fear for the domestic economy to see this in. When the razor gave the planners discipline Farm Products with chinese words. Exactly you have zoom once to know how dangerous is chinas shopping spree for germany. I think but i think it could be africa because you tang is a chinese millionaire hes here in karlsruhe on business. A leading global manufacturer of packing in process technology is looking for a new investor several parties from both germany and abroad have already come to look at the production facilities today its you tongue whos offered the company one hundred fifty Million Euros and sweetened the deal by ensuring that in the future would be able to sell its machines in asia without difficulties. For the german management this all sounds promising but the companys employees are skeptical because tongues company talking manufactures similar machines in china the new potential Chinese Investment has employees concerned. Shockey of and the first reaction is. China is far away and when tante there is difference they have to hit ideas about working out as so it sort of takes that moment as a large part of the workforce sees it pragmatically the baby chef get im talking about his ahead of time weve been sellers its all started off a call for this time however the biggest fear is that with this sale the entire production will be relocated to china. Or when some other developments from that room there wouldnt be so great for us of course if the production were moved elsewhere are. But i can go maybe we can also learn something from a child knows what. Investor tongue ensures them hes not out to destroy roma co he wants to team up with the manufacturer in karlsruhe to overtake competitors such as bosh to the. Teams china is a huge market and germany is highly developed scientifically and technologically us working together chinese and German Companies could conquer the Global Markets. So we have a three year plan we want to increase from a close market share in china into this this. Will not cause the change to korti so right now the annual turnover there is only five to six million euro. Chinese corporation and that would mean in the future major decisions would be made by chinese investors a good reason for the german management to weigh up the situation carefully. Jobs a lot at stake in the negotiations between trucking and well come back later to find out what kind of agreement was reached. Just one of Many Companies chinese investors have shown interest in. Twenty Sixteen Companies in germany. Over ten billion changed hands. And. It is one of several. Agencies. In business with china. Germany. Open markets. And sometimes even. It is abroad and also in europe and germany and america and. Were seeing a solid upward trend most of the acquisitions we handled pursue Strategic Interests. In other words chinese entrepreneurs will say i have an objective i want to expand abroad or i need to upgrade my technology in order. For mentation ill keep the home why are china sylvesters so keen on germany in particular one. Poured. Into german products and German Technology highly regarded that. As a vietnam is in Automobile IndustryMechanical Engineering and machinery instruction machine or have an excellent reputation in china the good news and the horse cool off. One reason germany has become a focus of interest is because of a government scheme known as made in china twenty twenty five the country wants to put its days as a producer of cheap goods behind it to become a technological leader and industrial superpower. At the hanover messa the Worlds Largest industrial trade fair its clear where chinas interests lie robotics Semiconductor Technology and automation. Up until now Chinese Companies often simply copied products no one does it better no other country churns out more reproductions or counterfeit goods. The cost to germany alone is over seven point three billion euro. A Company Based in the bavarian city of playing and barrack has felt the sting. Specializes in pressure temperature and Level Measurement Technology their instruments are used primarily in heating and Industrial Facilities and must operate with absolute precision. Products have been widely copied by Chinese Companies. Eleven years its. Job to track down the fakes. So whats original and whats. The difference between an original and a fake is not always easy to spot for the retail customer often on fakes the printed parts are a bit blurry at the cascade is even worse like here at the front its been cut by hand perhaps with a pair of nail scissors and theres no way this seal is tight enough for the main thing is that it wont measure the pressure properly subjected to vibration the instrument would likely fail if it stamped made in germany but wasnt and it does not adhere to the quality standards of made in germany thats not for. Its a tough. And his boss so why is china in particular causing so many problems. You know its a lot of fuss over the past years china has grown from a developing country into an industrialized one and a lot of Small Companies want to be in a foothold in the market. And boy and they often take a very pragmatic approach to put it diplomatically its. The economic damage is significant but for this Medium Sized Company theres even more at stake. Just imagine if our instruments are often used for critical applications for involving hard pressure for example. Handed for devices and up to specs it could result in serious damage or even personal injury and through it all of the wealth. And if there were do involve a device during the vico name. It doesnt matter how many ways we can prove that its not one of our products the damage to our image has been. Invented in germany and reproduced cheaply in china under the original name that shouldnt be possible in germany intellectual property is protected by the German Patent Office in munich but patents in germany arent worth much in china they have to be registered there and the requirements are different in germany inventions must truly be new in china its often enough for the goods to simply be new to the market that leaves room to patent blatant rip offs is that also part of the chinese strategy attorney usually involved combats counterfeiters on behalf of German Companies which takes a lot of time and energy. And he knows and china you have to submit a lot of paperwork before a judge will even look at the need to develop a very broad strategy all. Than in any other card because you never know which of the many will fart is the deal with intact on Property Rights in china well be responsible for your case or which of the Property Rights will ultimately help you win that case would vary from the plagiarism and. If a case does go to court its still not easy for wagner and his client Chinese Companies generally win has the impression the state is interested in supporting its own patents. China launched a Major Initiative a few years ago they wanted to see millions of peytons filed within a few years unfortunately the innovations arent always worthy of a pay to im going to standards here differ from those in europe but Chinese Companies sometimes with Tax Advantages register a lot of patrons and then push them through the film there are johnnies courts go along with that. Want the shoe musician. Before us we want to know if its china first in case law. Its more like you realize theres a tendency to mistrust foreigners they always have to present everything to the chinese johns with a triple stamina certified translation its a lot easier for the chinese a lot of these hurdles are purely formalities which of course have been set up by the state. Are german businesses systematically disadvantaged and working to find out and make our way to china the country is germanys most important Business Partner outside europe with a trade value of about one hundred seventy billion euro more than two thousand six hundred German Companies are based in the greater Shanghai Area alone but if you hope to succeed you have to abide by chinese rules and they are strict foreigners are not allowed to invest in every branch for some you need to enter into a joint venture with chinese partners and there are limits to how much capital can flow in and out of the country. Third of german on. But moores complain about a lack of transparency bureaucratic hurdles and bias in legal interpretations. Of the German Chamber of commerce abroad is critical of the systematic bias to. Trying to germany as a country that is largely open to Foreign Investment but we are still seeing limited market docsis in china before in the case of Public Tenders for example the Companies Keep telling us that there is a lack of transparency and that its not always easy to understand why theyve been shut out of the process spartans few dozen my time is now fourteen current but it tends to be a little complicated here in china does this i list here in kenya and if guns i am for. Many companies would agree but few dare to talk openly about the problems for fear of reprisals by the chinese authorities but we did find one entrepreneur who was willing to talk to us on camera. Hike aventuras company develop scanners tama graphs and measuring instruments for industrial use eleven years ago she came to china and taught chinese engineers german know how then one of her employees started offering the same services outside Company Hours with the help of colleagues and equipment from their german employer. The respect for it like as they were swept through property as we do that i didnt have the same sense of justice so i more or less have to expect that one in one hundred employees will say well ill take that and do my own thing with it when i go to the government this is what security measures have you put in place to ensure that the no house stays within our company even in the form of life would be it was very important not to reveal every facet of our technical now go to ensure that didnt happen right for a start we continue to manufacture the least sensitive parts in germany and then have them sent here to be installed in the machine and were heading for. The russian. Vessel dismissed the employee. But thats not the only bad experience shes had she also set up a joint venture with a chinese partner who made a profit while she lost half a Million Euros reasons which are often. Called the script so i mock. Operates and it works quite well and theres a market that is reserved for domestic manufacturers its is not just the your opponent so we thought it would be a good idea to enter into a joint venture with a partner from china to. Kenya. Us to conquer this other market as well. So that didnt work out so well vents all experiences that every day applications and paperwork are required for everything nothing moves forward without a stamp and to get that pencil had to. Time and again she feels the long arm of the state she wants to show us how it is we accompany her to one of the authorities a combination of a customs and labor inspectorate she needs its approval to bring components from her own factory into the country and. The head of the authority also wants to show German Television what they have achieved here hes proud that in just ten years more than twelve hundred companies have settled in the region of his responsibility they are all in sectors that the Chinese Government sees as crucial to the countrys future engineering Semiconductor Technology and automation. We ask the head of the agency what the Broader Vision is the way. Government has created many opportunities to transform. Chinas economy to develop it were trying to move away from the traditional way of doing business with a new economy driven by innovation and high tech. Entrepreneurs to especially from germany. Thank you very much. Makes it clear and nothing in china happens by chance. Development. Twenty twenty five envisions a quantum shift away from cheap to an industrial super power that will rival north america and. Has allocated nineteen billion for investment in the Semiconductor Industry alone. Chinese companies cant make the advance quickly enough on their own they have to buy their way in. Theres evidence of that in western germany. Where crane manufacturer. Years ago the company was on the brink of bankruptcy first because of the banking crisis and then because many of its customers were unable to pay suddenly the jobs of sixty six employees were on the line then bush won one and investor from china appeared on the scene and took over the company the money from china kept the company afloat management is still in german hands. It was difficult to determine mr. Or would this be a long term commitment. For the Chinese Market but not as. Much money. Leaves the task of running the business to his german just once a year he comes to. Us. In the first place in the chinese province of henan he made a name for himself as an automotive supplier he had nothing to do with cranes. Regional strategy was behind his investment. Serves a prime market. Intended for the European Market we want to. Receive support from the chinese. Government. To develop production in china and make the brand. With their governments developing strategy. So this investment was made with support from the state. He doesnt reveal the exact amount but without that money vill bet would have gone bust but in another respect it cost the company dearly because the way germany builds cranes is now also known in china. Technology transfers and state subsidized shopping sprees what does this mean for germany as a Business Location experts at berlins merits institute for china studies spent a long time looking at chinas master plan and working out the strategy behind it. Has analyzed numerous Chinese Company takeovers including starter motor and generator subsidiary the chinese investors are actually made up of a complex network with locations in germany luxembourg and the Cayman Islands and in the end everything comes together in a special Holding Company. If you look at the Chinese Business register this Holding Company is owned entirely by hand. Which is a very very clear indication of the provincial plan for the Automotive Industry the. State owned enterprises have. Another example n. X. P. Semiconductors in hamburg the buyer appeared to be a private investor but a look into numerous Shell Companies reveals a state fun directly subordinate to the council of state so not a private investor after all. Trying to give the impression that this is a private plan when the governments actually behind it that if you have nothing to hide theres no reason not to say that the government is involved. Its a controversial strategy. Thinks it has to do with germany as a Business Location. Is germany being sold off little by little as part of the Second Division by there are indeed risks that we have to observe in this travel an increasing proportion of investment is driven by state participants stopped without. Basic aim is to supplant Farm Products with chinese ones. To prevent takeovers would have to be blocked until recently the German Government could only do that when it came to armaments and military technology but since july twenty seven teen the government has been able to veto deals if Critical Infrastructure is affected the e. U. Is now considering expanding the rules to the whole of europe the numerous Company Takeovers the bad experiences with patents the hidden hand of the state and the made in c