THE German economy ministry said Friday it had launched a review of a planned Chinese bid for aerospace supplier Cotesa, a move which could lead to Berlin blocking the sale.

The case, which comes after Berlin tightened its rules on foreign corporate takeovers in July, has echoes of the German Government’s decision last year to withdraw approval for China’s Fujian Grand Chip Investment Fund to buy chip equipment maker Aixtron.

“Currently, there is a foreign investment review under way regarding the sale of Cotesa,” an economy ministry spokeswoman said, adding she could not comment on the details.

Cotesa CEO Joerg Huesken said that his company is being pursued by a subsidiary of the China Iron & Steel Research Institute, a State-owned company that aims to make Chinese aircraft maker COMAC competitive with Airbus and Boeing.

“It’s a done deal. We’re now waiting for Berlin’s approval and we hope that the decision comes quickly,” Huesken said, adding that the Chinese buyer had pledged in the contract to invest heavily in Cotesa’s business locations in Germany.

(SD-Agencies)