Gas turbine business - German government prohibits sale of MAN business to Chinese company
The German government is banning the planned sale of MAN Energy Solutions' gas turbine business to the Chinese company CSIC Longjiang. This was reported by the German Press Agency from government circles. A corresponding decision is supposed to fall in the cabinet on Wednesday. Previously, "Handelsblatt" had reported.
The background is that the designated buyer CSIC Longjiang Guanghan Gas Turbine (GHGT) has close ties to the Chinese military industry and produces engines for Chinese destroyers itself. Experts warned in "Handelsblatt" that the technology of the gas turbines from MAN, a Volkswagen subsidiary, could also be used for military purposes. This would reportedly not only apply to their use in warships, but also in fighter jets and drones.
Security circles reportedly expressed concern about the possible deal to the newspaper, and the Foreign Office and the Defense Ministry are also said to have spoken out against the sale.
- The Federal Government's economic policy decision to ban the sale of MAN Energy Solutions' gas turbine business to CSIC Longjiang has sparked controversy in Germany and the EU.
- The German Press Agency stated that the German government's move is due to concerns about the Chinese company's ties with the Chinese military industry and its potential use of MAN's technology for military purposes.
- The mechanical engineering giant MAN, a subsidiary of Volkswagen, faces challenges in its foreign trade relations following this ban, as the sale to CSIC Longjiang would have significantly expanded its presence in China.
- The German newspaper "Handelsblatt" had previously reported on the potential sale, highlighting experts' warnings about the potential misuse of MAN's gas turbine technology for military purposes by CSIC Longjiang Guanghan Gas Turbine (GHGT).
- The ban on the sale of MAN Energy Solutions' gas turbine business to CSIC Longjiang is a significant instance of the German government's efforts to protect sensitive technological sectors from foreign influence, as highlighted in recent discussions within the EU.
- Despite the controversy, MAN has not publicly commented on the ban, but industry analysts predict potential follow-up actions from the Chinese government in response to the German decision.
