US urged to stop disrupting acquisitions

China urged Washington yesterday to stop disrupting its foreign corporate acquisitions after President Barack Obama blocked the purchase of a German maker of semiconductor manufacturing equipment as a security risk.

The proposed acquisition of Aixtron SE by China’s Fujian Grand Chip was “pure market behavior,” said a foreign ministry spokesman, Lu Kang.

On Friday, Obama ordered Fujian Grand Chip to drop its attempt to take over Aixtron’s California subsidiary. The government said Aixtron’s technology has “military applications.”

“We hope that the United States will cease making groundless accusations about Chinese companies and will provide a fair environment and favorable conditions for investment by them,” said Lu at a regular briefing. “I think this matter will in the long run be in the interests of all the parties concerned.”

It was the third time in three decades that a U.S. president has blocked an acquisition by a Chinese company on security grounds.

Germany approved the 670 million euro (USD740 million) takeover of Aixtron’s German parent but said last week it was reconsidering due to unspecified “security-related questions.”

Aixtron, based in Herzogenrath, says its headquarters, research and development operations and existing technology would remain at its current sites under the proposed acquisition. MDT/AP