Avoid politics in purchase of Aixtron: China

China appealed to Washington and Berlin to avoid injecting politics into the proposed takeover of a German maker of semiconductor manufacturing equipment following a report President Obama plans to oppose it as a security risk.

The proposed 670 million euro ($740 million) acquisition of Aixtron SE by Fujian Grand Chip, a semiconductor maker, is “normal business activity,” said a foreign ministry spokesman, Geng Shuang.

Bloomberg News reported Obama was preparing to veto the deal, marking the third time Washington has blocked a Chinese corporate takeover on security grounds. The German newspaper Handelsblatt reported earlier that Germany was warned by US intelligence that Aixtron’s technology could be used for military purposes.

“Since it’s a normal commercial activity, it will be carried out following the rule of markets and business,” said Geng. “We hope the external parties will not overinterpret that or make any political intervention.”

Chinese companies have made a multibillion-dollar string of acquisitions in Europe to obtain technology and brands including Club Med, Pirelli tires and Volvo Cars. (AP)