In recent developments, the German government has blocked the sale of Volkswagen’s gas turbine business, MAN Energy Solutions, to a Chinese company due to security concerns. This move comes amid rising tensions between the EU and China, prompting the German economy ministry to review and potentially halt transactions that pose national security risks.
The planned sale of MAN Energy Solutions to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT) was announced in June 2023, sparking concerns from German politicians about the potential military use of the gas turbines. GHGT is owned by China State Shipbuilding Corporation (CSSC), a major player in the Chinese shipbuilding industry. The sale was welcomed by Interior Minister Nancy Faeser, who cited security reasons at a news conference.
Economy Minister Robert Habeck stated that while Germany generally welcomes investments, technologies crucial for “public order” must be protected, leading to the halt of the deal. MAN Energy Solutions has respected the government’s decision and will begin winding down development of new gas turbines while taking care to consider the interests of its employees, customers, and partners. The business employs around 14,000 people.
The German government has urged companies to reduce their reliance on China and called for fair competition among companies. The EU is also addressing what it views as unfair Chinese subsidies in the electric vehicle sector, although Germany’s VDA auto association has urged the European Commission to reconsider its proposed tariffs.