According to government circles, the sale of Volkswagen’s gas turbine business to China has failed because of a veto by the German government. The gas turbine division of MAN Energy Solutions cannot be sold to the Chinese CSIC Longjiang GH Gas Turbine Co (GHGT) under the Foreign Trade and Payments Act because its parent company, the shipyard group China State Shipbuilding Corp (CSSC), is too close to the country’s military. The cabinet will make a decision to this effect on Wednesday, government representatives told Reuters on Tuesday.