Germany Blocks Sale of Gas Turbine Business to Chinese Company over National Security Concerns

Germany’s cabinet has blocked the sale of MAN Energy Solutions’ gas turbine business to a Chinese company on security grounds. This decision comes as tensions between the EU and China continue to rise, prompting Berlin to review its transactions with national security implications.

The planned sale was announced in June 2023, with the China State Shipbuilding Corporation (CSSC) owning the Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT). However, concerns have been raised among German politicians about China’s use of 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. The government has urged firms to reduce their dependence on China and is advocating for a fair playing field for companies in the EU.

MAN Energy Solutions has respected the government’s decision and will begin a structured process to wind down its development of gas turbines. The company plans to do so carefully, taking into consideration the interests of employees, customers, and partners. While it will retain its profitable turbine service business, MAN Energy Solutions is urging companies in Europe to diversify their supply chains and reduce their reliance on China.