German Government Blocks Sale of MAN Energy Solutions Gas Turbine Business to Chinese Company

The German government has taken a decisive stance in prohibiting the planned sale of MAN Energy Solutions gas turbine business to the Chinese company CSIC Longjiang. Federal Minister of Economics Robert Habeck of the Greens party voiced concerns in Berlin about safeguarding technologies relevant to public security and order from potential information leakage or influence by countries that may not always have friendly intentions towards Germany. The minister emphasized the need to protect not just high-end technology but also established technologies utilized in security-critical sectors. Habeck made it clear that the prohibition was issued with the intention of safeguarding national interests. Interior Minister Nancy Faeser of the SPD party echoed these sentiments, emphasizing the importance of the decision for security reasons. The joint press conference held by Habeck and Faeser confirmed a previous report by Handelsblatt which indicated that a cabinet decision on the matter was imminent.

The key issue at the center of the debate is the close ties that the designated buyer, CSIC Longjiang Guanghan Gas Turbine (GHGT), has with the Chinese defense industry. GHGT is known for producing drives for Chinese destroyers, raising concerns among experts that the gas turbine technology acquired from the Volkswagen subsidiary MAN could potentially be repurposed for military applications. The apprehensions extend beyond the use of gas turbines in warships to encompass their potential deployment in combat aircraft and drones. The German government's move to block the sale underscores the significance of protecting sensitive technologies and highlights the complexities associated with foreign investments in strategic industries.

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