Regulators in China have slowed reviews of several proposed acquisitions by US companies, according to a report by the Wall Street Journal on Tuesday.
The move is seen as a response to Washington’s curbs on China’s tech industry.
The potential slowdown includes deals such as Intel’s $5.2-billion takeover of Tower Semiconductor and chipmaker MaxLinear’s $3.8 billion purchase of Silicon Motion Technology Corp, and possibly Broadcom’s $61-billion bid for cloud computing company VMware.
China’s State Administration for Market Regulation has asked the companies involved to make products they sell in other countries available in China in a bid to counter US export controls on China, the report said, citing people close to the process.
The competition regulator, which has made this demand a precondition to approving the deals, could not be immediately reached for a comment.
ALSO SEE:
China Calls on WTO to Review Chip Export Curbs Led by US
As US-China ties fray, merger reviews have become an additional tool for Beijing in its tit-for-tat fight with Washington over access to advanced technology.
Approval is required from Chinese authorities if companies involved in a deal have a sizable business presence in the country.
If two companies in a deal have revenue of more than $117 million a year from China, the merger needs Beijing to sign off, according to the WSJ report.
Intel, Tower, MaxLinear and Silicon Motion did not immediately respond to requests for comment.
- Reuters with additional editing by Jim Pollard
ALSO SEE:
China’s Yuan is Now the Most Traded Currency in Russia
Japan Joins US Chip War Against China With Export Restrictions
Huawei Beats US Sanctions With Chip Tool Breakthrough
