Concerns Mount Over Chinese Ownership in Gothenburg's Economy
Gothenburg faces economic risks from increasing Chinese ownership of Volvo Cars, raising employment and strategic concerns.
Key Points
- • Volvo Cars plans a battery factory partnership with a Chinese company, heightening dependence on China.
- • Elisabet Lann warns of economic vulnerability due to geopolitical tensions, specifically regarding Taiwan.
- • Recent layoffs of 2,000 jobs are connected to broader geopolitical issues, affecting local employment.
- • Lann urges for partnerships with countries like Taiwan and Japan to reduce dependency on China.
Growing concerns are emerging regarding the increasing Chinese ownership in Gothenburg, particularly involving Volvo Cars' ties with Geely, a Chinese automotive giant. Councilor Elisabet Lann has raised alarms about Volvo's plans to collaborate with a Chinese partner on a new battery factory in Hisingen, following the exit of Northvolt. She warns that this partnership will deepen Gothenburg's reliance on China amidst escalating geopolitical tensions.
Volvo Cars, currently employing about 19,500 people in Gothenburg, is now viewed as more of a foreign entity rather than a local business due to its Chinese ownership, which is mandated to uphold the national interests of China. This shift is punctuated by the recent layoffs of 2,000 workers within the company, a decision attributed to the tumultuous geopolitical landscape, especially the trade wars between China and the United States and the ongoing Taiwan crisis.
Lann underscores the potential ramifications of a military conflict over Taiwan, suggesting that sanctions could have dire effects on companies like Volvo, similar to those imposed on Russia following its aggression in Ukraine. Moreover, she indicates that strategic expertise is being shifted from Gothenburg to China, potentially endangering an additional 3,000 jobs connected to the battery factory initiative. Lann calls for the local government to seek partnerships with nations that share democratic values, such as Taiwan, South Korea, and Japan, in an effort to protect Gothenburg's economy.