German government blocks planned sale of VW's gas turbine business to China over security concerns - feddit.org

cross-posted from: https://feddit.org/post/429369 [https://feddit.org/post/429369] > Germany’s cabinet blocked the planned sale of Volkswagen’s subsidiary MAN Energy Solutions’ gas turbine division to a Chinese company on Wednesday, two government sources said. > > The decision comes as Germany and the European Union try to reduce risks from economic ties with China. > > MAN Energy Solutions said last September that the government would take a closer look at the planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT). > > The deal was first announced in June 2023 at an undisclosed price. > GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry. > > A spokesperson for MAN Energy Solutions declined to comment. > Three people familiar with the matter had told Reuters on Tuesday that Germany would block the plans. > > MAN Energy Solutions will wind down gas turbine development and production as a result of the blocked sale, one source had said, adding the group would retain its profitable turbine service business. > > Germany’s economy ministry has the right to review and block transactions deemed to have implications for national security.