Germany blocks Chinese-owned firm’s microchip factory deal

A winged ‘Elmos rhinoceros’ stands in front of the chip factory Elmos Semiconductor SE offices in Dortmund (dpa via AP)

The German government has blocked the sale of a microchip 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 shipping firm’s investment in a German container terminal and a visit to Beijing last week by Chancellor Olaf Scholz.