Forex

Xi and Scholz meet, what’s the deal?


It’s a bit of a controversial time for the meeting to take place but one can figure what this is really all about in just one glance. As much as Europe would like not to admit it, China remains a key pillar for the economy as a trading partner and business investor.

I mean just last week, Scholz pulled the strings to allow for Chinese shipping giant, Cosco, to purchase a roughly 25% stake in a terminal in Hamburg, one of Germany’s largest ports. The decision came despite domestic protests but the investment is at least less than the initially planned 35% stake that Cosco aimed for.

But I mean, you get the point. There is growing Chinese influence in the region and this ties to further dependency on the part of Germany on China. It’s no coincidence that Scholz wants to maintain that, especially at a time when the economy is teetering on the brink of a recession and an energy crisis going into next year.



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Justin Low
Justin Low

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