China: Qualcomm failed to resolve anti-monopoly worries

In this April 27, 2017, photo, a staff member talks with a visitor at a display booth for Qualcomm at the Global Mobile Internet Conference (GMIC) in Beijing. China's government said Friday, July 27, 2018, that tech giant Qualcomm Inc. failed to resolve anti-monopoly regulators' concerns about its proposed takeover of NXP Semiconductors in a case seen as a possible victim of U.S.-Chinese trade tensions. (AP Photo/Mark Schiefelbein)

China's government says tech giant Qualcomm failed to resolve concerns its proposed takeover of NXP Semiconductors would harm competition in a case companies saw as a possible victim of U.S.-Chinese trade tensions

BEIJING — Qualcomm Inc. failed to resolve China's anti-monopoly concerns about its proposed acquisition of NXP Semiconductors, the government said Friday, in a case analysts warned would worsen escalating U.S.-Chinese tensions over technology.

The State Administration for Market Regulation's announcement followed a government denial Thursday that a lengthy anti-monopoly review, which prompted Qualcomm to drop its bid this week, was linked to Beijing's tariff dispute with Washington.

Qualcomm's plan for the $44 billion acquisition "cannot resolve competition concerns," the regulator said on its website. It gave no details.

The delay following U.S. and European approval prompted suggestions Beijing might be using the case as leverage in its spiraling dispute with Washington.

Beijing's failure to approve the deal "will escalate trade tensions between the two countries," Eurasia Group said in a report.

Qualcomm had described the bid for NXP, announced in 2016, as a way to expand into markets for automobiles, security and network processing. That would have created an even bigger global competitor to a fledgling Chinese semiconductor industry communist leaders are spending billions of dollars to develop.

The deal "had been held hostage" to U.S.-Chinese trade tensions and Washington's decision on whether to rescind a ban on sales of U.S. technology to telecoms equipment maker ZTE Corp., Eurasia Group said.

ZTE was accused of reneging on a settlement over violations of U.S. rules on exports to Iran and North Korea. American regulators lifted the sales ban July 13, but Eurasia Group said that might be in jeopardy.

Qualcomm, headquartered in San Diego, applied for the anti-monopoly review before Beijing's dispute with U.S. President Donald Trump over complaints China steals or forces foreign companies to hand over technology blew up.

The company withdrew its application in April and submitted a new version after the Commerce Ministry said it faced unspecified difficulties satisfying concerns it might harm competition.

On July 6, the Trump administration raised import duties on $34 billion of Chinese medical technology and other goods it said benefit from improper government support. Beijing retaliated by raising its own tariffs on the same amount of U.S. imports.

Qualcomm dropped the bid for NXP on Wednesday when its agreement expired without Chinese approval.

A Commerce Ministry spokesman, Gao Feng, said Thursday the case "has nothing to do with" the U.S.-Chinese dispute.

Related News

China pledges further cuts in excess steel, coal...

Jan 10, 2017

China's top economic planner has pledged to continue cutting steel and coal production, which have...

Chinese delegation open to meeting Trump's team...

Jan 11, 2017

A Chinese official says President Xi Jinping's delegation to the World Economic Forum is open to...

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

China aircraft carrier capabilities tested on...

Jan 14, 2017

China's sole aircraft carrier has returned home following a three-week cruise during which its...

A look at how Trump might shake things up in Asia

Jan 16, 2017

Donald Trump has offered views on U.S. relations with Asia that could indicate radical shifts in...

Malaysia Air on rebound as missing flight search...

Jan 17, 2017

Nearly three years after twin disasters took it to the brink of financial collapse, Malaysia...

About Us

Daily World Web took the initiative to utilize the development in cloud and AI technology to create a free, instantaneous and borderless flow of news, the way it should be.

Contact us: sales[at]dailyworldweb.com

Subscribe Now!