Germany has blocked the sale of a gas turbine unit to CSIC Longjiang GH Gas Turbine, a subsidiary of China State Shipbuilding Corporation. The unit was owned by MAN Energy Solutions, part of the Volkswagen group.
In a South China Morning Post report, Economy Minister Robert Habeck, under Germany's Foreign Trade and Payments Act, cited national security concerns.
The proposed deal, announced on June 20, would have seen CSIC Longjiang take over MAN's operations in Oberhausen and Zurich and focus on developing new gas turbine products.
However, German authorities expressed apprehension over CSIC Longjiang's connections to the Chinese military, viewing it as a potential risk to national security and public order. Based on Germany's legal framework, intervention is necessary to prevent the acquisition of low as 10% of the stakes in critical technology and infrastructure companies by non-EU entities.
Why Germany Blocked the Sale
Minister Habeck emphasized the necessity of protecting technologies that could compromise public safety or fall under the influence of countries with hostile relations.
CSIC Longjiang, which manufactures small and medium-sized turbines and engines for Chinese naval destroyers, did not immediately comment on the German government's decision.
While respecting the government's decision, MAN Energy Solutions has indicated that it does not share the view that its turbine technology could be repurposed for military use.
This business deal was considered necessary due to the involvement of technology and operations related to gas turbines, which are valuable for various industrial applications, including energy generation and potentially for military purposes.
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