Germany has blocked the sale of a Volkswagen subsidiary to China on national security grounds, delivering a fresh blow to the already tense relationship with its biggest trading partner. But a German government review, initiated in September, raised concerns that China might use the gas turbines to power warships, according to Reuters. But Berlin’s relationship with Beijing has come under strain in recent years, as Germany tries to protect local manufacturers and reduce its dependence on China. In November 2022, Germany blocked the sale of one of its semiconductor factories to a Chinese-owned tech company, also citing security concerns. Volkswagen, Europe’s biggest carmaker, reiterated earlier comments that the timing of the EU decision is “detrimental to the current weak demand” for EVs in Germany and the region.

Source: CNN July 04, 2024 11:42 UTC