Germany has halted the sale of a Volkswagen subsidiary to China, citing national security risks and exacerbating tensions with its largest trading partner. MAN Energy Solutions, a part of the Volkswagen Group, announced plans in June 2023 to sell its gas turbines business to CSIC Longjiang GH Gas Turbine Co, a Chinese state-owned entity. However, a German government review launched in September raised fears that the turbines could be used for military purposes, particularly to power warships, as reported by Reuters.
This decision comes shortly after the European Union imposed increased tariffs on Chinese electric vehicles, triggering a trade dispute. Beijing responded by initiating an investigation into EU pork prices. Speaking at a recent press conference, Germany’s Economy Minister Robert Habeck stressed the country’s openness to foreign investments but emphasized the need to safeguard technologies critical for public security, especially from countries with uncertain diplomatic relations.
Interior Minister Nancy Faeser echoed this sentiment, supporting the government’s stance on security grounds. Despite a substantial trade volume of €255 billion ($275.3 billion) last year, Germany has been actively safeguarding its local industries and reducing reliance on Chinese imports, leading to strained relations with Beijing in recent years.
Germany has intervened to block the sale of a Volkswagen subsidiary to China, citing national security risks and escalating tensions with its primary trade partner. MAN Energy Solutions, a division of the Volkswagen Group, initially announced plans in June 2023 to sell its gas turbines business to CSIC Longjiang GH Gas Turbine Co., a Chinese state-owned company. However, a German government review initiated in September raised concerns that these turbines could potentially be used in military applications, such as powering warships, according to Reuters.
This decision follows closely after the European Union imposed heightened tariffs on Chinese electric vehicles, sparking a trade dispute. In response, Beijing launched an investigation into EU pork prices. During a recent press conference, Germany’s Economy Minister, Robert Habeck, emphasized Berlin’s openness to foreign investments while underscoring the importance of safeguarding technologies critical to public security, particularly from nations with uncertain diplomatic relations.
Interior Minister Nancy Faeser echoed these sentiments, supporting the government’s stance on security grounds. Despite substantial trade figures totaling €255 billion ($275.3 billion) last year, Germany has increasingly prioritized protecting local industries and reducing dependence on Chinese imports, contributing to strained relations with Beijing in recent years.
