{"id":31675,"date":"2025-06-24T05:21:09","date_gmt":"2025-06-24T05:21:09","guid":{"rendered":"https:\/\/financialrush.com\/?p=31675"},"modified":"2025-06-24T05:21:09","modified_gmt":"2025-06-24T05:21:09","slug":"dws-chief-urges-europe-to-accept-more-chinese-and-gulf-investment","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=31675","title":{"rendered":"DWS chief urges Europe to accept more Chinese and Gulf investment"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=965a9eaf-601e-4f3f-8ed6-64f26f16cff0\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The chief executive of Deutsche Bank\u2019s asset management arm has urged European policymakers to adopt a more pragmatic stance towards investments from China and the Gulf, as Berlin prepares to spend hundreds of billions overhauling its creaking infrastructure.<\/p>\n<p>\u201cJust as Donald Trump and his entourage travelled to Doha, Abu Dhabi and Riyadh to raise trillions for America \u2014 would German or European leaders do the same?\u201d DWS chief executive Stefan Hoops told the Financial Times. <\/p>\n<p>\u201cThere\u2019s no need to beg, but also no reason to dismiss the idea of strategic deals in the region.\u201d<\/p>\n<p>Hoops argued that sovereign wealth funds in the Gulf and Chinese state-affiliated investors still had substantial cash to deploy. <\/p>\n<p>The growing geopolitical rift between Washington and Beijing could be an opportunity to redirect some of that investment to Europe, he said. <\/p>\n<p>\u201cIn the past, more of it [Chinese money] flowed to the US, but now the focus is shifting more towards Europe.\u201d<\/p>\n<p>Germany\u2019s new chancellor Friedrich Merz has relaxed the country\u2019s constitutional debt brake to allow \u20ac500bn of investment in roads, railways, hospitals and schools over the coming years. The measure also clears the way for unlimited borrowing for defence.<\/p>\n<p>The shift in German fiscal policy, coupled with increasingly protectionist policies in the US, has sparked renewed interest from international investors in Europe. US private equity group Apollo Global Management has said it could deploy <a href=\"https:\/\/www.ft.com\/content\/1391b1ff-2ce8-4f9e-b63f-7cf5c918047b\" data-trackable=\"link\">as much as $100bn in Germany over the next decade<\/a>.<\/p>\n<p>However, foreign infrastructure investment \u2014 particularly from non-western states \u2014 remains politically sensitive in Berlin and elsewhere in Europe. Chinese bids for strategic assets such as ports have faced increasing regulatory scrutiny, with some blocked outright or made subject to national security conditions.<\/p>\n<p>Hoops called for greater clarity around what kinds of foreign investments should be encouraged against this backdrop. \u201cWe need to define which assets or sectors must remain in German, European or western hands \u2014 and in which cases we\u2019re open to accepting capital from any source or institution.\u201d<\/p>\n<p>He pointed to the expansion of the German Autobahn as one example where funding from Chinese or Saudi investors should be welcomed. <\/p>\n<p>But he drew a line at sectors such as defence or energy. \u201cOf course you don\u2019t want such critical infrastructure to end up, for example, in Russian hands,\u201d he said, citing the nationalisation of parts of Germany\u2019s gas grid following Russia\u2019s invasion of Ukraine in 2022.<\/p>\n<p>Excluding investors on geopolitical grounds came with a price, Hoops warned, as it could increase the cost of capital and undermine the viability of much-needed infrastructure projects.<\/p>\n<p>Hoops said that Chinese investors, for instance, frequently met excessive scepticism. <\/p>\n<p>\u201cIn many cases we assume a geopolitical reason for investment interest and underestimate that they\u2019re simply looking to invest for the sake of returns,\u201d he said.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/965a9eaf-601e-4f3f-8ed6-64f26f16cff0\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this&hellip;\n","protected":false},"author":6,"featured_media":31676,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-31675","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31675"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/31675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/31676"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}