ERLANGEN, Germany, July 13 Reuters Siemens will spend 1 billion euros 1.12 billionon new factories and facilities in Germany, the engineering company said on Thursday, as Berlin published a strategy paper highlighting the economic and security risks of investing in China.

Chancellor Olaf Scholz visited the company39;s site in Erlangen, southern Germany, for the announcement which included 500 million euros to expand and modernise a factory making electronic components and machine tool controls.

The investment will increase production capacity by 60 when it is completed in 2029, although no new jobs will be created immediately at the site which currently employs 3,500 people.

Siemens wants the factory to become a showcase for the high tech manufacturing, with new production and RD buildings being planned and simulated digitally.

News of the Erlangen investment came as Berlin published a paper responding to a more assertive China, which included warnings about security risks of investing in the country.

Germany also wants to adjust its list of goods that are subject to export controls.

Rising tensions between Beijing and the West have made many companies wary of their dependence on China, especially with U.S. attempts to block China39;s access to the latest technology.

Siemens, which last month unveiled a 2 billion euro global investment plan, said it was investing in Germany to accelerate growth and also increase its resilience.

The German investment is part of the…