Military engine maker Motor Sich, which is strategically important to national security and holds key manufacturing technologies, will be renationalized in Ukraine to prevent Chinese companies from annexing it.
Reuters reported yesterday that Oleksiy Danilov, secretary of Ukraine’s National Security and Defense Council, said Ukraine would renationalize military engine maker Motor Sich to prevent its annexation by Chinese companies because of its strategic importance to national security and its possession of key manufacturing technologies.
“The nationalization process will be carried out in a legal procedure and all investors will be compensated, freeing this key military manufacturing company, which has been privatized for more than 20 years, from being coveted by Chinese companies.” Danilov said.
Foreign media pointed out that the United States, as the main backer of Ukraine against the Russian invasion, could please the United States despite the fact that nationalizing Madasic in Ukraine would anger the Chinese Communist Party, which has long feared that Madasic’s key technologies would flow into the hands of the Chinese Communist Party and has incessantly opposed Chinese companies’ investment in Madasic in recent years.
Madasic is an “important legacy” of Soviet rule to the Ukrainian military industry, and is best known for its work in producing a variety of Soviet-era military aerospace engines, such as propellers for space rockets and cruise missiles, power systems for attack helicopters, jet engines for various military aircraft… These were the main products of Madasic.
However, Madasic has fallen into an operational crisis in recent years, and Chinese companies have taken advantage of the opportunity to expand their investments. Beijing Tianjiao Aviation, a subsidiary of Beijing Xinwei Technology Group, and Ukraine’s DCH Group, acquired more than 50% of Madasic in 2019.
The reason why the United States and even Russia are not happy to see Madasic being annexed by the Chinese Communist Party is that the People’s Liberation Army Air Force (PLAAF) is still unable to master the advanced technology of “warplane engines,” which means that the Chinese Communist Party is unable to independently develop and produce its own warplane engines and power systems for its own warplanes, and can only look to Russia.
Oleksiy Danilov, secretary of the National Security and Defense Council of Ukraine, said he would nationalize the Madasic.
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