The partnership between the Daimler AG and China’s largest arms exporter is "questionable"!

According to the Society for Threatened Peoples (STP), the partnership between the Daimler AG and China's largest arms exporter Norinco (China North Industries Group Corporation) is "questionable". "The Daimler AG should reconsider the cooperation with Norinco, for China is stirring up the arms race in the conflict zones of Southern Asia and Africa," said the STP's expert on questions regarding Asia, Ulrich Delius, in Göttingen on Monday. Today, the Stockholm International Peace Research Institute (SIPRI) announced that China is now the world's fifth-largest arms exporter. The Daimler AG is closely connected to the Norinco company – directly and also by its subsidiary, the Tognum AG (MTU).

The corporate policies of both Daimler and Tognum contain a commitment to the protection of human rights. "However, this can hardly be reconciled with the close connection to Norinco," criticized Delius. Norinco delivers weapons to all the conflict areas in the world. "We would like to know how Daimler is trying to make sure that their technologies are not being used by Norinco to improve the Chinese military equipment." Daimler's "Critical Shareholders" assume that at least 23 Chinese battleships were equipped with MTU diesel engines that were built in China under license. "Also, it should by clarified to what extent Norinco could use know-how from MTU to produce armored personnel carriers and howitzers." Chinese engineers have a lot of experience in copying the latest technology from abroad. Because of this, guests from China are no longer welcome in Daimler's main car-production facilities in Stuttgart.

Because of the arms exports, Norinco managed to increase its trading profit by 18.7 percent in 2012. The company developed the howitzer SH1 especially for exports – and Sudan, Algeria, Egypt and Pakistan have already ordered larger amounts. Sudan was even able to get a license to build several WZ 551 battle-tanks that are marketed by Norinco. At least 500 of them were already delivered to the Sudanese army. They are not only being used in the war in South Kordofan, but also to break up demonstrations in the capital Khartoum. Sri Lanka, Pakistan, Iran and Chad also bought several battle-tanks from Norinco and Morocco ordered 150 battle tanks of the type MBT 2000. In 2012, the Burmese army also showed interest in this tank.

The Daimler AG and the British engine manufacturer Rolls-Royce are holding 98.9 percent of the Tognum AG since November 2011. With the subsidiary MTU, the company – which is based in Friedrichshafen – is the worlds leading producer of diesel engines (also for tanks, frigates and submarines). Tognum and Norinco assemble diesel engines in Suzhou, China, since a joint venture was agreed on in 2007.

The Daimler AG also cooperates with Norinco directly. In September 1988, the company in Stuttgart signed a contract with Norinco to build Mercedes trucks in Baotou in Inner Mongolia. In 1996, the state-owned bank Kreditanstalt für Wiederaufbau (KfW) supported the project with 118 million DM. In 1996, the company in Baotou started to produce army trucks of the type ND 2629, mainly for the Chinese army. These trucks are mainly used to transport artillery and heavy weapons.