That is also possibly the reason Tesla is in such trouble over their new factory. While they are a car manufacturer, and a modern, hip and green one at that, which politics openly hails as good, secretly they are damaging established interests by the traditional German car manufacturers and their allies in high positions. So the administration will nod and smile, but try to find ways to hinder them.
I don't really see the german government here at fault. They were eager to get the factory up and running and were working with Tesla to get it built quickly. If Tesla wants to build first and get the permits later, it also has to retroactively improve things when they were not up to code. You can't just get permits because you've built something.
You can find giant chemical and manufacturing plants all across Germany.
Thinking Germany is problematic is a very narrow worldview, in most countries you have huge political/corruption/business continuity risks, from unsteady electricity to broken roads to terror threats - Germany is a safe and stable bet.
But I think environmental policy would be really hostile to a large fab. Politics seems really fickle about it too. For "old school" industries like coal they try to bend over backwards to make exceptions, but when it comes to new players especially local politics will have little reservations to tanking your multi million dollar projects.
This can obviously be a huge benefit to the population, but if I were in the position to choose a location I'd factor that in heavily.