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China criticizes US for blocking sale of German firm

China on Monday criticized a US decision to block a Chinese company's purchase of German semiconductor equipment maker Aixtron, saying business should not be politicized.

Published: 5 December 2016 12:20 CET

China criticizes US for blocking sale of German firm

Aixtron's headquarter in Herzogenrath in North Rhine-Westphalia. Photo: DPA

President Barack Obama blocked the deal by rejecting the inclusion of Aixtron's US unit in it.

The US Treasury Department said the Committee on Foreign Investment in the United States had found that the risks posed by the purchase, which could put sensitive technology with potential military applications in Chinese hands, were too great.

Chinese foreign ministry spokesman Lu Kang said the move to purchase Aixtron was purely market-driven.

“China opposes politicizing normal business behaviour or interfering in it in a political way,” he told a regular press briefing.

“We hope the US side can stop making groundless accusations to Chinese companies and provide a fair environment and good conditions to Chinese investments.”

In a statement Friday the US Treasury said publicly-traded Aixtron SE's expertise in technology which is key to making advanced compound semiconductors used for LED lighting, lasers and solar cells also has military applications.

Washington does not want to see such technology end up in the hands of the Chinese government-backed company which wants to buy Aixtron, Grand Chip Investment.

The Treasury said Aixtron's US business was an important contributor to that technology.

In late October the German government withdrew its initial approval for the €670 million ($714 million) takeover after Washington raised security concerns.

Citing German intelligence sources, Handelsblatt daily reported that the US had expressed fears that China could use Aixtron technology to bolster its nuclear programme.

After receiving the information, the German economy ministry said on October 24th that it would reopen its review of the deal.

China derides Copenhagen democracy meet as 'political farce'

Demonstrators gathered outside the Copenhagen Democracy Summit on Tuesday. Photo: Emil Helms/Ritzau Scanpix

The Copenhagen Democracy Summit was held Monday and Tuesday in the Danish capital and organised by the Alliance of Democracies, an organisation targeted by Beijing sanctions in March and founded by former NATO boss Anders Fogh Rasmussen.

In addition to Taiwan’s President Tsai Ing-wen and Hong Kong democracy activist Nathan Law, Danish Foreign Minister Jeppe Kofod also participated in the forum by video link, which Beijing said violated “the one-China principle.”

“This summit is a political farce,” the Chinese embassy in Denmark wrote in a statement published on Tuesday. “Inviting those who advocate Taiwan and Hong Kong ‘independence’ to the meeting violates the one-China principle and interferes in China’s internal affairs,” it said.

“Some hypocritical western politicians are good at meddling in other countries’ internal affairs and creating divisions and confrontation in the name of ‘democracy’ and ‘freedom’. They are bound to fail,” it added.

At the conference on Monday, Kofod said it was “deplorable” that Beijing had imposed sanctions on 10 European individuals and organisations in response to EU sanctions on Xinjiang officials over their actions against the Uyghur Muslim minority.

Like most countries, Denmark applies the one-China principle — under which Beijing bars other countries from having simultaneous diplomatic relations with Taipei — though it does maintain relations with Taiwan.

Cut off politically from the rest of China since the end of the Chinese Civil War in 1949, the territory is self-governing but is not recognised by
the United Nations.

Beijing considers Taiwan a rebel province that will one day return under its control, by force if necessary.

China’s sabre-rattling has increased considerably over the past year, with fighter jets and nuclear-capable bombers breaching Taiwan’s air defence zone on a near-daily basis.

“Our government is fully aware of the threats to regional security, and is actively enhancing our national defence capabilities to protect our
democracy,” Tsai told the conference in a video address on Monday. US President Joe Biden is expected to present his China strategy soon, as
calls mount for him to publicly commit to defending Taiwan militarily in the event of a Chinese attack.

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