SIMIC

Shipping giant Cosco made a bid last year to take a 35 per cent stake in one of logistics firm HHLA's one of three terminals in Germany's largest port, but the German coalition has been divided on whether to allow it.

Germany approved a sale of 24.9 per cent of the terminal to Cosco recently, down from the stake originally planned amid objections to the deal from the two junior partners in German Chancellor Olaf Scholz's three-way coalition.

By pushing the stake under 25 per cent, the deal no longer officially requires Cabinet approval, which would have been hard to muster from the Greens and liberal-run ministries.

Since, a US State Department official speaking to reporters on the condition of anonymity said Washington has been working with European partners to ensure that any investments by China in strategic areas that raise security questions are looked in to carefully and that appropriate steps are taken.

"The embassy was very clear that we strongly suggested that there'd be no controlling interest by China, and as you see when they adjusted the deal, there isn't," said a second senior State Department official.