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Germany reconsiders investment guarantees

The German government is questioning its support for German companies in their business in China. The Federal Ministry of Economics, for example, is considering overturning state investment and export guarantees for companies operating in China, several people familiar with the proceedings told Reuters. In addition, the state development bank KfW is to scale back its credit lines for German companies’ China business and in return be able to expand them for activities in other Asian countries such as Indonesia. “We want to help avoid the German economy becoming too dependent on China,” a government official said.

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