"BASF CEO Markus Kamieth stated, 'China remains the market offering the greatest growth for our industry.' The company views the focus on new industries and renewables as a significant opportunity."
"Germany's chemicals industry faces challenges in competitiveness against China, with BASF highlighting high energy and labor costs, along with regulatory burdens, as major concerns."
"BASF's investment in China occurs despite Berlin's calls for companies to 'de-risk' through diversification, as many German firms prioritize short-term profits over concerns about Chinese practices."
BASF has inaugurated an $10 billion production complex in Zhanjiang, China, marking its largest investment. This decision is controversial due to job outsourcing from Germany to India and China, and it raises concerns about supporting China's Communist Party. BASF has implemented cost-cutting measures at home, including layoffs. The company believes that expanding in China is essential for future profitability, citing the country's growth potential in the chemical market. However, this move contradicts Berlin's push for companies to diversify and reduce risks associated with the Chinese market.
Read at www.dw.com
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