Ukraine plans to nationalize a prominent aerospace manufacturer and cancel its acquisition by China, after the U.S. opposed the deal to keep critical defense technology out of Beijing’s hands.
The Ukrainian government’s national security council last week announced the decision on Motor Sich, a maker of advanced engines. The decision angered China, which demanded Ukraine respect the rights of Chinese investors, and the plans still must pass the Ukrainian legislature and could face legal challenges from the spurned Chinese suitors.
If carried out, the state takeover would end more than three years of wrangling that had placed the company and Ukraine in an expanding confrontation between Washington and Beijing.
It could also salve relations between the Biden administration and Ukraine, after the government became embroiled in U.S. domestic politics during
presidency, weakening support for the country in Washington.
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