Germany Blocks Sale of Volkswagen's MAN Energy Solutions Gas Turbine Business to China Over Security Concerns

Jul 3, 2024, 09:20 AM

The German government has blocked the planned sale of Volkswagen's gas turbine business, MAN Energy Solutions, to China's state-owned CSIC Longjiang GH Gas Turbine Co (GHGT), which belongs to China State Shipbuilding Corporation (CSSC), citing national security concerns. The decision, welcomed by the German Interior Minister for security reasons, reflects heightened scrutiny of foreign investments in critical infrastructure. MAN Energy Solutions has stated that it respects the government's decision and will initiate a structured process to handle the new development of the gas turbine division in the coming months. This move comes amid ongoing trade tensions between Germany and China, with German Economy Minister Habeck emphasizing the need to find a solution to the trade dispute by November. The information was reported by Reuters.