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Acquisitions and joint ventures are becoming more difficult for
Chinese firms, Hu Zhijian, president of the Chinese Academy of
Science and Technology for Development (CASTED), told reporters
in Beijing on Wednesday.
"It is not wise for the U.S. to close its doors in industries
that are declining in profit ... the United States should step
forward and develop new technology areas," said Hu.
U.S. regulators have called for heightened scrutiny of Chinese
chip acquisitions leading to a chill in overseas M&A activity by
Chinese chip firms, with a number of high-level deals failing to
gain approval.
In December the Obama administration blocked China's Fujian
Grand Chip Investment Fund (FGC) from completing the acquisition
of German semiconductor firm Aixtron <AIXGn.DE> over national
security concerns related to Aixtron's U.S. assets.
In March China-backed buyout fund Canyon Bridge Capital Partners
LLC resubmitted a $1.3 billion bid for U.S. chip firm Lattice
Semiconductor Corp <LSCC.O> to the Committee on Foreign
Investment in the United States (CFIUS) after the initial review
period expired.
More than 20 U.S. Congress members signed a letter to the U.S.
Treasury in December calling for a block on the Lattice deal,
saying it could disrupt the U.S. military supply chain and
increase reliance on foreign chipmakers.
"The United States should not be afraid of other countries
catching up," Hu said, adding that China is seeking technologies
the United States has already developed in the past two decades
and Chinese investment could boot profitability in the sector.
Washington recently sought to strengthen the role of CFIUS, the
inter-agency committee that reviews foreign acquisitions of U.S.
companies on national security grounds.
U.S. politicians and lawmakers have called for the committee to
increase deal scrutiny in areas where China is seeking to build
world-leading technology, including artificial intelligence.
China will release a national artificial intelligence plan in
the coming months, following a similar roadmap released by the
United States, Hu said.
(Reporting by Cate Cadell; Editing by David Evans)
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