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The outlet, which is published by the People's
Daily, China's official newspaper for the ruling Communist
Party, argued a recent attempt to block a Chinese purchase of a
Korean chip company "represents a dangerous precedent for the
industry as a whole."
"If the US succeeds in blocking the deal this time, it could set
a very bad precedent for global high-tech mergers and
acquisitions, further consolidating the industrial concentration
in the US," the op-ed read.
In March, China-based private equity group Wise Road Capital
announced it would purchase Korea's Magnachip Semiconductor Corp
for $1.4 billion.
On Monday, Magnachip said in an SEC filing that the U.S.
Department of Treasury, in a letter to the company's legal
counsel last Friday, said the acquisition posed "risks to the
national security of the United States."
The chip sector has become a hotbed for tensions between the
U.S. and China.
Both countries are pouring billions of into their domestic
industries, with the recognition that semiconductors are
critical to national security and economic development.
Cross-border acquisitions, which require approval from
regulatory bodies, have at times fallen apart because of
government objections.
In 2018, Qualcomm Inc's planned $44 billion acquisition of Dutch
chipmaker NXP Semiconductors NV failed after China's
anti-monopoly regulator signaled it would not approve the deal.
That same year, Singapore's Broadcom Inc withdrew its $117
billion bid to acquire Qualcomm after Washington's Committee on
Foreign Investment in the United States (CFIUS) said the
purchase could endanger the U.S' national security by aiding
China.
(Reporting by Josh Horwitz. Editing by Gerry Doyle)
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