Corporate China’s global shopping binge barrelled on last week with more multibillion dollar deals, but Beijing is starting to discover that there are limits to what its money can buy.
In recent days German and European Union officials have moved to tighten up scrutiny or even block high-profile acquisitions in the latest sign of growing opposition to Chinese purchases of companies in key industries due to national security or competition concerns.
Swiss chemical giant Syngenta said Tuesday that EU regulators examining its proposed $43 billion takeover by state-owned ChemChina have “recently requested a large amount of additional information,” which will drag the approval process out into the first quarter of next year.
At about the same time, the German government withdrew clearance for a Chinese company to buy semiconductor equipment maker Aixtron in a $670 million deal over unspecified security-related concerns — a decision that threatens to complicate German Economy Minister Sigmar Gabriel’s trade visit to China this week.
“The surge in Chinese acquisitions of high-tech companies certainly has policymakers on high alert, especially in Germany,” said Bjorn Conrad, vice president of research at the Mercator Institute for China Studies in Berlin, which tracks China’s overseas investment. “That is because China is not playing by the rules.” READ MORE: http://www.foxbusiness.com/markets/2016/10/28/china-overseas-takeover-spree-meets-growing-resistance.html