Volkswagen unit MAN Energy Solutions' gas turbine business to a Chinese company on Wednesday, with ministers citing security reasons.
The decision comes amid rising trade tensions between the EU and China. Germany's economy ministry can review and stop transactions deemed to have national security implications, and Berlin and the EU are trying to reduce risks from economic ties with Beijing.
The planned sale of the German business to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT) was announced in June 2023 at an undisclosed price, but MAN Energy Solutions said in September the government would take a close look.
GHGT belongs to the China State Shipbuilding Corporation (CSSC), which dominates the Chinese shipbuilding industry.
Some German politicians are concerned that China might use the gas turbines not for civilian purposes but to power warships.
Asked about the decision at a news conference, Interior Minister Nancy Faeser welcomed it «for security reasons».
China's foreign ministry said during a regular news briefing on Thursday that it opposes the politicisation of normal business cooperation and establishing «artificial obstacles».
«We should strengthen economic and trade cooperation based on common interests and market rules in the spirit of mutual benefit and win-win results,» spokesperson Mao Ning said.
She added that China hopes Germany will provide a fair, just and non-discriminatory business environment for all, including Chinese firms.
Economy Minister Robert Habeck said Germany