Germany blocks Chinese-owned firm’s chip factory deal

By GEIR MOULSON
Associated Press

BERLIN (AP) — The German government has blocked the sale of a chip factory to a Swedish subsidiary of a Chinese company. The decision Wednesday comes as Berlin grapples with its future approach to Beijing. The move by the Cabinet follows a recent compromise over a Chinese shipping firm’s investment in a German container terminal and a visit to Beijing last week by Chancellor Olaf Scholz. The government’s red light was anticipated after German company Elmos said this week that it had been informed the sale of its chip factory in Dortmund to Chinese-owned Silex Microsystems would likely be prohibited. Germany’s economy minister said the government also blocked a second planned investment but wouldn’t give more details.