The German government has blocked the sale of Volkswagen’s gas turbine operations to a Chinese company, citing security concerns. The decision was made by ministers who were concerned about the potential implications of the sale.
The sale involved Volkswagen’s MAN Energy Solutions unit, which was set to be acquired by the Chinese state-owned company CSIC Longjiang. The deal was announced in June, but authorities began investigating it in September, as reported by Reuters. Some officials in Germany expressed concerns that China could use the gas turbines for military purposes rather than civilian use.
In response to the decision, MAN Energy Solutions stated that they respected the government’s decision and would reassess their turbine operations. The German Ministry of Economy has the power to review and block transactions that could impact national security, as reported by Reuters.
Germany and the European Union have been actively working to mitigate the potential risks associated with economic partnerships with China. The decision to block the sale of Volkswagen’s gas turbine operations is part of these efforts to safeguard national security and protect important technologies.
