The German cabinet approved an investment by China's COSCO SHIPPING Lines for a 24.9% stake in one of logistics firm HHLA's three terminals in Germany's largest port in Hamburg, fueling debate about strategic foreign investments.

The approved investment is less than the initially planned 35% stake that the Chinese shipping giant and HHLA Hamburger Hafen und Logistik AG had aimed for and does not give Cosco any say in management or strategic decisions.

The compromise was negotiated after significant political resistance against Cosco participation that included rejection by the economy and foreign ministries. It came a week before Chancellor Olaf Scholz is due to travel to China.