Germany is considering blocking a bid by Chinese container giant Cosco Shipping Holdings Co. from buying an 80% stake in Hamburg-based freight forwarder Zippel due to security concerns. The Economy Ministry plans to submit a proposal to cabinet soon, according to anonymous sources familiar with the deliberations. Any prohibition under Germany’s foreign-investment screening rules requires cabinet approval.

Chancellor Friedrich Merz’s government is taking a harder line on competition with China as it prepares broader security measures. The coalition aims to approve the framework on Oct. 14, including tighter investment screening and stronger export controls. Handelsblatt reported that several ministries support blocking the deal, citing risks of strategic dependency in a conflict.

The ministry confirmed it is reviewing Cosco’s acquisition of Konrad Zippel under the foreign-investment regime but declined to comment on details. Germany remains committed to open engagement with China but will safeguard its interests using available legal instruments. Germany’s antitrust authority cleared the deal in February, finding no competition concerns as the firms operate at different levels of the transport chain, but stressed that security review is separate.

Cosco already owns 24.99% of HHLA’s Container Terminal Tollerort in Hamburg, a stake capped below 25% by the former Scholz government in 2022 due to security risks. Zippel employs about 350 people and specializes in moving containers between seaports and inland destinations, often by rail, including through Hamburg and Bremerhaven. Cosco also controls the operator of Greece’s Piraeus port.