Germany blocks another big business deal with China

illuminem summarizes for you the essential news of the day. Read the full piece on CNN or enjoy below:

🗞️ Driving the news: Germany has blocked the sale of Volkswagen's subsidiary, MAN Energy Solutions' gas turbines business, to Chinese state-owned CSIC Longjiang GH Gas Turbine Co (GHGT) on national security grounds
• This decision exacerbates the already strained relationship between Germany and China

🔭 The context: The German government review raised concerns about the potential use of these gas turbines in Chinese warships
• This comes shortly after the EU increased tariffs on Chinese electric vehicles, leading to a trade dispute • Germany, having learned from its reliance on Russian gas, is keen to reduce dependency on China and protect sensitive technologies

🌍 Why it matters for the planet: The decision reflects a broader trend of nations prioritizing security over economic ties, which could impact global trade dynamics
• It highlights the delicate balance between fostering international business relationships and ensuring national security
• The move could influence other countries to adopt similar measures, affecting global supply chains and economic policies

⏭️ What's next: MAN Energy Solutions plans to close down the gas turbine division following the blocked sale
• The EU and China are in intensified consultations to resolve the ongoing trade disputes, including the recent tariffs on electric vehicles
• Future decisions on tariffs and trade policies will shape the economic landscape between Europe and China

💬 One quote: “Technologies relevant to ‘public security’ must be protected from countries ‘which maybe do not always have a friendly relationship with us,’” said Germany’s economy minister Robert Habeck

📈 One stat: Germany and China traded goods worth €255 billion ($275.3 billion) last year

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