Study Reveals Cultural and Governance Challenges in Chinese-Owned German Firms

Hans-Böckler-Stiftung's research highlights reduced employee participation and operational shifts in German companies acquired by Chinese investors.

Chinese takeovers of German companies frequently result in diminished employee participation in decision-making processes.
The study identifies cultural barriers, restricted information access, and paternalistic management styles as key challenges under Chinese ownership.
Since 2001, Chinese firms have acquired 294 German companies, with approximately one-third of these acquisitions ending in resale or closure.
Chinese managers often assume direct control, with 159 companies installing Chinese executives to work alongside local leadership.
Germany's co-determination model contrasts sharply with China's centralized corporate practices, complicating labor relations and governance.