China restarts review of Qualcomm’s US$44b NXP purchase
The deal’s approval by mainland authorities would mark another step back from a trade war that had threatened to engulf China and the US
Chinese regulators have restarted their review of Qualcomm’s application to acquire NXP Semiconductors after having shelved the work earlier in reaction to growing trade tensions with the United States, according to people familiar with the matter.
Officials of China’s Ministry of Commerce (Mofcom) have been asked to hasten the long-delayed review of the purchase and Qualcomm’s proposed remedies to protect companies on the mainland, said the people, asking not to be identified because the talks are private.
Chinese companies have expressed concern that the combined entity would extend Qualcomm’s patent licensing business into areas like mobile payments and autonomous driving.
The approval, if it comes, would mark another step back from a trade war that had threatened to engulf the world’s two largest economies.
On Sunday, US President Donald Trump stepped in to rescue ZTE Corp, the Chinese telecommunications equipment maker that had been in danger of failing because of a ban on buying US components. In a Twitter post, Trump said he was working with Chinese president Xi Jinping to give ZTE “a way to get back into business, fast”.
Qualcomm approval is not definite at this point and could still be delayed, the people said.