China criticizes German veto against sale of gas turbine business to Chinese company
The Chinese government criticized the German government's veto against the sale of parts of MAN Energy Solutions' gas turbine business to a Chinese company. The two countries should develop business relationships in mutual interest, a spokesperson for China's Ministry of Foreign Affairs in Beijing said on Thursday. China hopes that Germany will create a fair competitive environment for all, including China.
The German cabinet had prohibited the planned sale to the Chinese CSIC Longjiang GH Gas Turbine Co (GHGT) based on the Foreign Trade Act. The German government is concerned that China may use the turbines not only for civilian purposes, but also to power warships. GHGT is part of China State Shipbuilding Corp (CSSC), which builds ships for the Chinese Navy. According to the Foreign Trade Act, the German government can ban sales to non-EU countries if they could endanger national security. MAN Energy announced after the veto that it would halt the construction and development of gas turbines. However, the profitable maintenance is expected to continue. The MAN Energy division employs a total of 100 employees in Oberhausen and Zurich.
- Despite the German government's veto against the sale of MAN Energy Solutions' gas turbine business to a Chinese company, China hopes to establish fair business relations with The company in the future.
- The Chinese government's criticism of Germany's veto in the gas turbine business is likely to impact the future business relations between The company and its prospective Chinese partner, CSIC Longjiang GH Gas Turbine Co.
- The German government's decision to veto the sale of MAN Energy Solutions' gas turbine business to China using the Foreign Trade Act is a potential setback for the gas turbine business's expansion into the Chinese market, potentially affecting its business relations with China.
