BERLIN (Reuters) - Germany has blocked the takeover of satellite and radar technology firm IMST by a subsidiary of state-controlled missile maker China Aerospace and Industry Group (CASIC) due to national security concerns, a government document showed on Tuesday.
FILE PHOTO: German and Chinese national flags fly in Tiananmen Square ahead of the visit of German Chancellor Angela Merkel in Beijing, China, May 23, 2018.
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.
In various cases, IMST’s products and services were also the subject of deliveries to the Bundeswehr armed forces,” it said.
Germany has lowered the threshold for screening and even blocking purchases of stakes in German firms by non-Europeans in a move to fend off unwanted takeover attempts mainly by state-backed Chinese investors in strategic areas. »
