The German government is seeking to prevent China COSCO Shipping (SS:601919), a Chinese state-owned shipping company, from acquiring Hamburg-based transportation firm Konrad Zippel, Handelsblatt reported Tuesday. The report cited significant security concerns and warned that the transaction could create dependencies usable as leverage. The Federal Ministry of Economics confirmed that the acquisition is under review but did not comment on the report’s central claim that the government opposes the deal. Zippel said it had taken note of the government’s decision and that operations were continuing normally, while directing questions about next steps to Cosco, the petitioner. Cosco declined to comment. The Federal Cartel Office cleared Cosco in February to acquire 80% of Zippel’s shares on competition grounds, while Germany’s domestic intelligence agency raised reservations about the transaction at the end of April.