Economics

Salami Strategy: Why China Will Want More After Robot-Maker Deal

Policymakers fret over technology transfer in Kuka purchase
Taking “a slice and if there’s no response they take another”

Robotic arms, manufactured by Kuka AG, operate on chassis of Porsche Macan sport-utility vehicles (SUV) on the production line inside the new Porsche AG factory in Leipzig, Germany, on Wednesday, Feb. 5, 2014.
Photographer: Krisztian Bocsi/Bloomberg

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By Sheenagh Matthews and Birgit Jennen

July 15, 2016 at 8:12 AM UTC

Updated on

July 15, 2016 at 11:13 AM UTC

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As China’s Midea Group Co. courts German robot maker Kuka AG, the suitor has guaranteed German jobs and factories for more than seven years and says it can help Kuka boost sales in China. Kuka’s management deems the offer fair, and top shareholders are backing the deal.

So what’s the problem? This being Germany, it’s about sausage.