German government prohibits sale of MAN subsidiary to Chinese company
The planned sale of MAN Energy Solutions' Gas Turbine business to the Chinese company CSIC Longjiang is reportedly being blocked by the German government. The cabinet is expected to pass a corresponding resolution under the Foreign Trade Act on Wednesday, according to government representatives speaking to Reuters news agency on Tuesday.
The proximity of the state-owned shipbuilding company "CSIC Longjiang GH Gas Turbine" to the Chinese military was given as the reason. According to the Foreign Trade Act, the government can prohibit sales to non-EU countries if this could potentially endanger national security and order. The Federal Ministry of Economics did not comment on the matter when contacted. The companies could not be reached for comment.
In September, MAN Energy Solutions, a subsidiary of Volkswagen, confirmed that the government was intensively reviewing the planned sale of the division to the Chinese. The company employs around 100 employees in Oberhausen and Zurich in the Gas Turbine business.
The blockage of the sale by the German government is largely due to the close association of CSIC Longjiang GH Gas Turbine with the Chinese military. This action aligns with the stipulations of Germany's Foreign Trade Act, which allows for the prohibition of sales to non-EU countries if national security and order may be threatened. MAN Energy Solutions, a MAN subsidiary and the potential seller, has a significant workforce of around 100 employees in the Gas Turbine business, located in Oberhausen and Zurich.
