China Cautions Germany Over Aixtron-Deal Halt

BEIJING—China has warned that Germany's decision to withdraw approval for a Chinese acquisition of chip maker Aixtron SE could hurt bilateral economic ties, and said German concerns about Chinese takeovers are unwarranted.

Speaking to reporters Wednesday, a spokesman for China's Commerce Ministry expressed hope that Germany's decision was "an isolated case" and not a change in policy.

Such a move "would be detrimental to the healthy development of bilateral investment and economic cooperation between China and Germany," the ministry spokesman, Shen Danyang, said at a news briefing.

Germany's economics ministry on Oct. 21 halted a €670 million ($741 million) purchase of Aixtron by the German unit of China's Fujian Grand Chip Investment Fund LP. The deal will go through a fresh regulatory review, though German authorities have declined to say how long that could take.

Berlin's decision underscored growing unease over a swelling tide of Chinese investments in Germany and other markets. Chinese officials have played down those concerns.

Mr. Shen acknowledged concerns in Germany about Chinese investment and acquisitions potentially "resulting in technology and job transfers." Such anxiety, he said, was "unnecessary."

"While Chinese investment in Germany has grown relatively quickly, the overall volume still isn't large," Mr. Shen said.

He said Beijing respects the rights of other governments to review foreign takeovers, but wants to see "fair treatment" for all investors. "We hope that the relevant German parties can rationally and objectively deal with enterprises and their commercial activities," he said.

Write to Chun Han Wong at [e-mail]

(END) Dow Jones Newswires

November 02, 2016 05:35 ET (09:35 GMT)

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