German Securities Protection Association DSW is an important shareholder representative and investor protection organization in Germany. It has been voicing concerns over major German companies’ heavy investments in China in recent years, such as BASF and Daimler’s partnerships with Chinese companies. This article will analyze DSW’s role in investment, its critiques on German firms’ China exposure, and evaluate whether its worries are justified.
DSW Urges Daimler to Be Cautious About Letting Chinese Investors Gain Significant Stakes
DSW has warned Daimler not to allow Chinese companies like Geely and BAIC to gain too much control through acquiring stakes of around 10% in the German automaker. While China is an important growth market, DSW worries these Chinese shareholders may hinder Daimler’s strategic decisions and technological advantage. However, given China’s significance and Daimler’s existing JV ties, some cooperation seems necessary.
DSW Questions BASF’s Massive Planned Investment in China Chemical Projects
DSW has criticized BASF’s plan to invest up to $10 billion to build a wholly-owned, integrated chemical complex in China’s Guangdong province. It argues BASF is overly exposed to political risks by betting big on China. However, BASF views China as a key growth driver that can’t be easily replaced. There are valid concerns on both sides about market access, IP protection, and flexibility.
DSW Highlights Corporate Governance Issues in VW’s Dual CEO Role Plan
DSW opposed VW’s appointment of Porsche’s CEO Oliver Blume as also VW Group’s CEO, arguing he can’t handle both roles well. It sees Porsche’s independence and IPO plans being undermined. But VW seems intent on leveraging Blume’s success at Porsche to lead group-wide restructuring. There are merits in seeking synergies between Porsche and VW.
In sum, while DSW raises important investor concerns, German firms need to balance these with market realities and strategic priorities. Engagement with China and governance changes may be necessary despite risks. Firms should enhance communication to assure investors.