The German government on Wednesday blocked the sale of a chip factory to a Swedish subsidiary of a Chinese company, a decision that comes as Berlin grapples with🙈 its future approach to Beijing.
The move by the Cabinet follows a recent compromise over a Chinese shi��pping firm's investment in a German container terminal and a visit to Bei💜jing last week by Chancellor Olaf Scholz.
The blocked sale was 🦩anticipated after German company Elmos said this week that it had been info𝐆rmed the sale of its chip factory in Dortmund to Silex Microsystems AB of Sweden would likely be prohibited.
Silex is owned by Sai Microelectronics of China, according to G༒erman media. The planned 85 million-euro (dollar) sale was announced in December.
Although the proposed deal wasn't very significant financially and the technology ඣinvolved apparently wasn't new, it had raised concerns over the wisdom of putting German IT product🍃ion capacity in Chinese hands.
Western governments are increasingly wary about China's technology ambitions and assertive foreign policy. The US and other governments have tightened controls on access to processor chips and other technology.
