China’s geely buys a stake in Daimler, the owner of mercedes-benz.

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Geely, the Chinese carmaker, has become the biggest investor in mercedes-benz’s owner Daimler, saying it wants to work with the German electric car giant.

Geely shares jumped to Hong Kong after it reported a nearly 10 per cent takeover offer over the weekend.

The Chinese carmaker already owns Sweden’s Volvo and black taxi maker London taxi company.

Mr Li is expected to meet with Daimler executives and German government officials later on Monday.

Geely’s 9.7 per cent stake in Germany’s high-profile carmakers raises concerns that Chinese companies will seek technology and innovation in return for deals.

But the German government said it thought “there is no need to act in accordance with the rules of competition or foreign investment rules”.


‘the invaders outside’

China is widely regarded as the most important future market for global auto makers.

In a statement, Mr Li said he wanted to “accompany Daimler to become the world’s leading supplier of electric vehicles” and was seeking long-term commitments.

He describes what he calls a “strategic vision”, arguing that the “foreign aggressors” in the traditional car industry mean that companies need to collaborate through partnerships and alliances.

Daimler also announced a $1.9 billion (1.4 billion pound) deal with BAIC, another Chinese car company, on the weekend.

The two companies said the money would be used to modernize the baic factory to build Mercedes cars, including electric cars.

Daimler and baic have already worked together in the Chinese market, where foreign production is usually approved only through cooperation with Chinese companies.

Last week, German rival carmaker BMW announced a deal with Chinese manufacturer Great Wall to produce electric mini cars for the local market in China.

The Chinese government says that by 2025 20% of sales of motor should be electric vehicle or plug-in hybrid car – this is prompting many global auto makers to increase investment target in China.

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