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U.S. blocking Chinese acquisitions of worldwide tech companies a “purple flag” – Chinese state-backed tabloid

Chinese and U.S. flags are established up for a meeting at China’s Ministry of Transport in Beijing, China April 27, 2018. REUTERS/Jason Lee

SHANGHAI, Sept 2 (Reuters) – Chinese condition-backed tabloid the International Times identified as U.S. efforts to block cross-border acquisitions of tech companies a “purple flag” that impedes China’s tech sector and disrupts the expansion of the world-wide tech sector.

The outlet, which is posted by the People’s Each day, China’s formal newspaper for the ruling Communist Bash, argued a current attempt to block a Chinese buy of a Korean chip corporation “signifies a harmful precedent for the industry as a whole.”

“If the US succeeds in blocking the deal this time, it could set a pretty lousy precedent for world significant-tech mergers and acquisitions, further more consolidating the industrial focus in the US,” the op-ed go through.

In March, China-based mostly personal equity team Wise Street Money announced it would purchase Korea’s Magnachip Semiconductor Corp (MX.N) for $1.4 billion.

On Monday, Magnachip mentioned in an SEC submitting that the U.S. Division of Treasury, in a letter to the company’s legal counsel past Friday, explained the acquisition posed “dangers to the nationwide safety of the United States.” go through far more

The chip sector has turn into a hotbed for tensions in between the U.S. and China.

Both international locations are pouring billions of into their domestic industries, with the recognition that semiconductors are important to countrywide protection and financial improvement.

Cross-border acquisitions, which need approval from regulatory bodies, have at periods fallen apart since of govt objections.

In 2018, Qualcomm Inc’s (QCOM.O) planned $44 billion acquisition of Dutch chipmaker NXP Semiconductors NV (NXPI.O) unsuccessful after China’s anti-monopoly regulator signaled it would not approve the deal.

That same year, Singapore’s Broadcom Inc withdrew its $117 billion bid to get Qualcomm soon after Washington’s Committee on Foreign Expense in the United States (CFIUS) mentioned the acquire could endanger the U.S’ national security by aiding China.

Reporting by Josh Horwitz. Modifying by Gerry Doyle

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