Chinese attempt to take over German company busted

Berlin/Beijing: – Chinese attempt to take over IMTC, the leading IT company in Germany, has been foiled. The German government rejected the proposal by the Chinese company by saying that the concerned company and its technology are sensitive from the national security point of view. This is the fourth German refusal for a Chinese company in the last three years. Before this, Chinese attempts to take over the companies Leifeld, 50 Hertz, PPM Pure Metals have been rejected by the German government.   

IMTC is known to be the leading German company in radar and satellite technology sectors. This company is also active in the mobile technology sector and is also said to be playing an essential role in the 5G and 6G technologies. IMTC is also participating in the technology research-related projects of the European Union.   

China Aerospace and Industry Group (CASIC), a Chinese company related to the defence and space sector, had initiated moves to take over IMTC. A proposal in this regard had been presented to the German government. CASIC is a company owned by the Chinese government and is known as the leader in missile manufacturing. It is also said that this company has developed Mobile Laser Systems and supersonic anti-ship missile.   

The German government rejected the Chinese proposal raising national security issues. It has been revealed that the German government raised national security issues saying, ‘IMTC is connected with many important projects in the German Aerospace sector. The company’s products and technology are supplied even to the German defence forces. At the same time, the contribution of IMTC will prove vital in the implementation of 5G and 6G technologies networks.’ The German government and the company have not given an official reaction in this matter. The Chinese foreign ministry too has said that it had no information regarding the matter.   

Germany had taken the initiative in opening up the European markets to China and improving relations between Europe and China. But since the last few years, tonnes of resentment is being heard from the European countries because of the aggressive Chinese policies. The Coronavirus pandemic, this year, has only added to the bitterness, making the anti-China sentiment stronger in Europe. At the same time, the European countries are consistently expressing concerns over the issues of Uyghurs and Hong Kong. The treatment meted out to the foreign companies by China is becoming a point of contention between Europe and China.   

Against this background, there are indications, since the last few months, that Germany has started changing its stand regarding China. In April, a German daily demanded compensation worth billions of dollars from China on the Coronavirus pandemic issue. In September, German Foreign Minister lashed out at China over the Taiwan issue. German Chancellor Angela Merkel issued a clear warning that the Chinese companies will be denied entry into the European markets. Germany seems to have realised the warning by denying permission to the Chinese company to acquire the German company. 

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