Germany blocks Chinese takeover of satellite firm over national security concerns
Germany joins the rest of the world to stop Chinese technology invasion due to security issues. Germany has blocked Chinese missile maker China Aerospace and Industry Group (CASIC) taking over German Satellite and Radar Technology form IMST.
The move comes amid increased tensions between Germany and China, whose trade ties have become very close in the past decade, over unfair competition caused by state-backed enterprises and restrictions on market access.
Berlin views IMST as an important provider of satellite communication, radar and radio technology, and its know-how is crucial for national security, according to the government document seen by Reuters.
IMST’s expertise is also needed for the construction of critical infrastructure in the future, including 5G and 6G networks, the document said.
“IMST is also an important partner of the German Aerospace Center (DLR). In various cases, IMST’s products and services were also the subject of deliveries to the Bundeswehr armed forces,” it said.
A German economy ministry spokeswoman declined to comment on company names, but said the cabinet had authorized the ministry in a closed-door meeting to screen and block a foreign investment by a non-European investor on the grounds that the step could pose a threat to national security.
The Chinese foreign ministry said in a statement it had no knowledge of the case, but added that the government had always encouraged Chinese companies to carry out “mutually beneficial” investment cooperation overseas.
“We hope that countries including Germany will provide Chinese companies that are operating normally with a fair, open and non-discriminatory market environment, and not politicize normal economic and trade cooperation, (or) use ‘national security’ as a pretext to engage in protectionism,” it added.
A spokeswoman for IMST, based in the western town of Kamp-Lintfort in North Rhine-Westphalia, declined to comment. CASIC was not immediately available for comment.
Source: Reuters
