An emerging ‘China-threat-corporatism’? CRRC’s acquisition of a German locomotive company and its impact on labour relations

Abstract

The China Railway Rolling Stock Corporation (CRRC) is presently the largest player in the global rolling stock industry and has increasingly expanded to mature markets. In 2019, CRRC acquired a German locomotive company, establishing a manufacturing foothold in the EU. This paper presents the findings of extensive field research on the impact of CRRC’s investment on industrial relations. Drawing on comparative capitalisms research and recent debates on the German model of industrial relations, we discuss key developments in the post-merger process. Our study reveals a continuity in industrial relations at the shop-floor level, characterized by stable co-determination practices. Nevertheless, the acquisition of the locomotive manufacturer has contributed to a new form of ‘China-threat-corporatism’, wherein trade unions and business associations have collaborated to advocate successfully for measures to protect the local rolling stock industry from Chinese competition.