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Friedrich Merz, the frontrunner in the race to become Germany’s chancellor, warned German companies about the “huge risks” of investing in China.

“I said to all German economic representatives that the decision to invest in China is a decision that involves a lot of risk,” the head of the Christian Democratic party said in Berlin on Thursday. He issued his warning during a question and answer session after a far-reaching speech on foreign policy that emphasized a pro-EU, Atlanticist view of Berlin’s role on the world stage.

“My heartfelt request to all companies . . . limit the risk you take to avoid putting your own company in jeopardy if it causes immediate layoffs,” says Merz.

China does not follow western legal standards, he added.

“You have to expect big disruptions if you take this risk. I’ve talked to a whole range of small and medium-sized and big companies as well. . . . If you take this risk and if you have to write these investments from one year to the next, then please do not, under any circumstances, go to the state for help.”

This is a developing story