London/Berlin CNN —Germany has blocked the sale of a Volkswagen subsidiary to China on national security grounds, delivering a fresh blow to the already tense relationship with its biggest trading partner.
MAN Energy Solutions, part of the Volkswagen Group, said in June 2023 that it planned to sell its gas turbines business to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT).
But a German government review, initiated in September, raised concerns that China might use the gas turbines to power warships, according to Reuters.
In November 2022, Germany blocked the sale of one of its semiconductor factories to a Chinese-owned tech company, also citing security concerns.
“(We) will now initiate a structured process to close-down the gas turbine division, which will take place over the coming months,” the company added in a statement shared with CNN.
Persons:
Robert Habeck, ”, Nancy Faeser
Organizations:
Berlin CNN —, Volkswagen, MAN Energy Solutions, Volkswagen Group, GH Gas Turbine Co, Reuters, European Union, Ukraine —, China’s Ministry of Foreign Affairs, CNN
Locations:
Berlin, Berlin CNN — Germany, China, Beijing, Germany, Russia, Ukraine