China: Qualcomm has failed to resolve anti-monopoly concerns

by Joe McDonald | BEIJING – Qualcomm Inc. has failed to resolve China's anti-monopoly concerns over its proposed acquisition of NXP Semiconductors, the government said Friday, in a case where badysts would warn of a worsening of climbing … Chinese tensions over technology

The announcement of the State Market Administration followed a government refusal on Thursday that a long review Antimonopoly, which pushed Qualcomm to abandon its bid this week, was linked to Beijing's tariff dispute with Washington.

Qualcomm's plan for the $ 44 billion acquisition "can not solve the competition concerns," the regulator said on his website. The delay following the approval of the United States and Europe has prompted Beijing to use the case as a lever in its conflict with Washington.

The failure of Beijing to approve the agreement "will aggravate trade tensions between the two countries." , "Eurasia Group said in a report.

Qualcomm had described the offer for NXP, announced in 2016, as a way to develop in the automotive, security and network processing markets. This would have created an even bigger global competitor for a fledgling Chinese semiconductor industry that is spending billions of dollars to develop.

The deal "was taken hostage" by US trade tensions. Chinese and Washington's decision to cancel The Eurasia group has accused ZTE of giving up an agreement on violations of US rules on exports to Iran and North Korea. lifted the ban on July 13, but the Eurasia group said that it was likely to be jeopardized.

Qualcomm, based in San Diego, requested the anti-monopoly review before the dispute between Beijing and the US President Donald Trump.

The company withdrew its application in April and submitted a new version after the Commerce Department declared that it was facing unspecified difficulties, which could harm competition .

On July 6, the Trump administration increased import duties on $ 34 billion of Chinese medical technology and other property, he said, benefit from $ 40 billion. inappropriate government support. Qualcomm dropped the offer for NXP on Wednesday when its deal expired without China's approval.

A spokesman for the Ministry of Commerce, Gao Feng, said Thursday the case "has nothing to do with" the US-China conflict.

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