Germany preparing first veto against Chinese takeover: report

Berlin is preparing for the first time to veto the takeover of a German company by Chinese investors for "strategic" reasons, local media reported today, a year after ministers toughened up rules over fears the country could lose vital technologies.

Business weekly Wirtschaftswoche reported the economy ministry will prevent Chinese investor Yantai Taihai Corporation from buying Leifeld Metal Spinning.

The 200-employee firm produces high-strength parts for the car and aerospace industries that also have nuclear applications.

"The cabinet will make the decision on August 1," the magazine said.

A spokesman for the ministry declined to comment on the specific case when contacted by AFP.

But he said that "the economy ministry can examine whether a purchase endangers public order or the security of the Federal Republic of Germany."