Germany Bans Sale of Ship Turbines to China

Against the background of further tightening of trade and economic relations between Europe and China, Russia offered the world’s second largest economy comprehensive cooperation: from localization of Chinese production in Russia to gas supplies at attractive prices.

While Russian President Vladimir Putin is in China to strengthen bilateral cooperation between the two neighboring countries, the German government has decided to “block the sale of a supply of gas turbines for ships by Man, a subsidiary of the Volkswagen Group, to the Chinese company Longjiang Guangahn Gas Turbine (GHGT).” According to German media, “the decision was made because of strong pressure from the White House on Berlin,” and the ban was based on GHGT’s “close ties with the Chinese defense industry.” The reason is the suspicion that gas turbines, manufactured by Man, may also be installed on Chinese ships.

Russia, on the other hand, is opening doors for cooperation with China in various sectors. It supports China’s intention to “localize production on its territory and is ready to provide incentives to investors.” As Russian President Vladimir Putin said during the opening of the Eighth Russian-Chinese EXPO and the Fourth Forum of Interregional Cooperation in the Chinese industrial city of Harbin, the administrative center of the northeastern Chinese province of Heilongjiang, “large-scale joint projects in the field of industrial cooperation are also being worked out, and Chinese automakers are actively entering the Russian market.” In particular, the Russian president said, Russia “not only welcomes the position of Chinese enterprises to locate production facilities in Russia, but is also ready to provide Chinese investors with economic benefits, assistance, and support, as well as access to Russia’s unique technological base and our highly qualified personnel.”

Before taking part in the opening of the Russian-Chinese exposition, Putin laid a wreath of flowers at the monument to the Soviet soldiers who fell in the battles to liberate Northeast China from Japanese invaders during World War II. The monument to the Red Army soldiers, located in downtown Harbin’s Hongbo Square, was erected on November 7, 1945 to commemorate the Soviet soldiers who died in the battles against Japan.

To facilitate the accelerated development of the Chinese economy, Russia is ready and able to continuously and reliably supply Chinese companies, cities, and towns with “clean and affordable energy, electricity, and heat,” Putin said. Faced with the need to increase the flow of energy from Russia to China, Moscow and Beijing intend to sign a contract for the construction of the Power of Siberia-2 gas pipeline in the near future. According to Russian Deputy Prime Minister Alexander Novak, “we intend to complete the review procedure and sign the contract for the construction of a 50 billion cubic meters gas pipeline through Mongolia in the near future. There are also many other new projects.”