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According to a German government document shown on Tuesday, Berlin blocked the acquisition of the satellite and radar technology company IMST by a subsidiary of state-controlled missile maker China Aerospace and Industry Group (CASIC) due to security concerns.
The move is only the latest in a series of incidents triggered by growing diplomatic tension between the two countries. Trade links between China and Germany have become very close over the last few decades, but restrictions on access to the Chinese market and unfair competition by state-owned companies have contributed to the deterioration of relations.
According to a document seen by Reuters, the German government considers IMST to be an important satellite, radar, and radio communications asset in the country and its know-how is crucial for national security.
According to the document, IMST’s expertise is essential for the construction of vital infrastructure in the future, including the development of 5G and 6G networks.
In recent years, the German government has blocked a number of Chinese acquisition attempts, including a proposed acquisition of Leifeld by Yantai Taihai and an offer from China’s State Grid for a stake in the 50Hertz power grid operator in 2018.
In August, the government rejected the Chinese company Vital Materials Co.’s offer to acquire PPM Pure Metals.
