Germany blocks Chinese takeover of satellite firm over national security concerns
- Berlin views IMST, which is a supplier of the country’s armed forces, as crucial for security
- China has urged Germany not to engage in protectionism
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 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.
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A German economy ministry spokeswoman declined to comment on company names, but said the cabinet had authorised 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.
