Germany blocks sale of Hamburg logistics firm to China's COSCO

The German government has blocked the sale of large parts of Hamburg logistics company Zippel to China's state-owned shipping giant COSCO due to security concerns.

A spokesman for the German Economy Ministry confirmed the decision on Wednesday after a Cabinet meeting in Berlin.

The acquisition of 80% of shares in Zippel by a Chinese company "would have deepened dependencies and jeopardized the resilience of Germany’s and the EU’s supply chains," the spokesman warned. 

As Europe’s largest economy, Germany welcomes foreign investment, he said. "At the same time, there may be investments that threaten the country’s security." 

Zippel transports goods by train, ship and lorry, some of which arrive at the ports of Hamburg and Bremerhaven. According to previous figures, the company has around 350 employees.