Germany has invoked national security concerns to block the sale of a gas turbine business to a Chinese company, in the latest western move to protect sensitive technologies from potential misuse in China. The veto on the sale of MAN Energy Solutions’ unit comes as Berlin tries to chart a more security-conscious path in its relations with China, its largest trading partner, despite mounting concerns about the competitiveness of the German economy and its flagging exports.
In 2022 the chancellor ignored ministerial objections to waive through the Chinese acquisition of a stake in one of Hamburg’s biggest container facilities, citing the benefits to the local economy and future Chinese investment potential in the port. The decision triggered a fierce debate over Germany’s security, as China has embraced a more authoritarian path and solidified its close relations with Russia even after the latter’s invasion of Ukraine in February 2022.