Germany Blocks Gas Turbine Sale to Chinese Company Amid Rising National Security Concerns and Trade Tensions

Germany has blocked the sale of its gas turbine business to a Chinese company due to concerns over national security. The decision was made at a time of rising trade tensions between the EU and China, prompting the economy ministry to review transactions with national security implications. Both Berlin and the EU are working to minimize risks from economic ties with Beijing.

In June 2023, MAN Energy Solutions announced a planned sale to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), owned by CSSC. However, German politicians raised concerns that China may use the gas turbines for military purposes rather than civilian use. Interior Minister Nancy Faeser and Economy Minister Robert Habeck both welcomed the decision, citing security reasons and the need to protect technologies essential for public order.

MAN Energy Solutions has respected the government’s decision and will begin a structured process to wind down the development of gas turbines. The company plans to carry out this phase carefully, considering the interests of employees, customers, and partners. While it will retain its profitable turbine service business, Germany is urging firms to lessen their dependence on China and advocating for a fair playing field for companies in the EU.

In addition to blocking the sale, Germany is taking action against what it perceives as unfair Chinese subsidies in the electric vehicle sector. The VDA auto association has called on the European Commission to drop its proposed tariffs in response to the situation.