BERLIN - Germany would put its port of Hamburg at a competitive disadvantage if it quashed a bid from China's Cosco to buy a stake in a container operator, the port city's mayor said.

A rejection would be "a one-sided, competition-distorting disadvantage for Hamburg compared to Rotterdam and Antwerp, where Cosco already owns terminal shares," Mayor Peter Tschentscher told Reuters.

"In order to keep up with international competition, it must also be possible for shipping companies to participate in terminals in Hamburg if this makes business sense," Tschentscher added.

Economy Minister Robert Habeck said in an interview with Reuters last week that he was leaning towards not allowing the deal, which would give China a stake in German critical infrastructure.

(Reporting by Andreas Rinke Writing by Miranda Murray and Rachel More Editing by Mark Potter)