Chancellor Angela Merkel on Tuesday said she saw "no violations" in a major investment by a Chinese billionaire in German car giant Daimler which has reignited concern over Chinese influence on European firms.

"We are open to trade partners and at first glance do not see any violations," Merkel told reporters in Berlin, days after Chinese billionaire Li Shufu bought a near 10-percent stake in the Mercedes-Benz parent company, making him the group's largest shareholder.

She noted that there are Kuwaiti investors at Daimler and stressed that the overall objective is to ensure that the automobile industry in Germany stays competitive.

China's increasing interest in German companies has sparked unease in Europe's biggest economy.

Li's latest investment in Germany's powerful auto company prompted Economy Minister Brigitte Zypries to warn Monday that Berlin will be "especially watchful" over the new major investor.

Daimler confirmed Friday that Li, who chairs auto giant Geely Automobile Holding, had quietly bought a 9.69-percent stake in the Stuttgart firm worth around 7.2 billion euros ($8.9 billion).

Worker representatives on Daimler's board said they too would scrutinise Li's plans, looking to defend factory sites and jobs in Germany.

Some politicians see the investment in a broader context of Chinese cash winding around the sinews of the European economy.

The distrust is all the greater as EU nations are more open to investment from abroad than Beijing allows on its territory.

Just last week, the Handelsblatt financial daily reported Berlin hopes to block State Grid Company of China (SGCC) from investing in 50Hertz, which operates the electricity grid in Germany's northeast.

German ministers agreed last year to expand government powers to scrutinise takeover bids from abroad, especially in sectors affecting critical infrastructure, and to extend the range of deals eligible for official probes.

The move followed the 2016 Chinese takeover of industrial robotics firm Kuka and US-based Tesla Motors' buying-up of factory automation specialist Grohmann Engineering.

That same year also saw Washington block a Chinese acquisition bid for German microchip maker Aixtron, warning its products could have military applications.

German diesel bans 'avoidable' despite court ruling: Berlin
Berlin (AFP) Feb 27, 2018 - German cities could reduce air pollution without banning older diesel vehicles, despite a top court's finding that barring them from certain zones would be legal, Environment Minister Barbara Hendricks said on Tuesday.

"The court has not issued any driving bans but created clarity about the law. Driving bans can be avoided, and my goal is and will remain that they do not come into force," Hendricks said after the decision from the Federal Administrative Court in Leipzig.

Judges found that cities could legally add driving bans in parts of city centres to their arsenal for cleaning up their air, but local authorities are free to bring levels of fine particle and nitrogen oxides (NOx) emissions down by other means if they are effective.

Deciding on how to do that without imposing bans will likely see a brawl between city, state and federal governments, as well as the European Commission in Brussels, carmakers, drivers and environmentalists.

If members of the centre-left Social Democratic Party approve renewing a coalition with Angela Merkel's conservatives in a ballot that closes Sunday, the issue could overshadow the longstanding chancellor's fourth term from day one.

High levels of diesel emissions in city air have been a hot topic in Germany since the world's largest carmaker Volkswagen admitted in 2015 to manipulating 11 million vehicles worldwide to fool regulatory tests.

The country -- along with a slew of others -- has also failed to hit a Brussels deadline to bring air pollution in 70 cities into line with EU standards.

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Germany 'watchful' of Chinese investment in Daimler
Frankfurt Am Main (AFP) Feb 26, 2018
Germany will be "especially watchful" over a new major investor in Mercedes-Benz maker Daimler, a minister said Monday, in the latest sign of European disquiet over Chinese influence over business. "We must keep an especially watchful eye" on auto billionaire Li Shufu's investment, Economy Minister Brigitte Zypries told the Stuttgarter Zeitung. Daimler confirmed Friday that Li bought a 9.69-percent stake in the Stuttgart firm worth around 7.2 billion euros ($8.9 billion), making him its weightie ... read more