China upset as Barack Obama bars Fujian buying Aixtron's US business

The headquarters of chip equipment maker Aixtron is pictured in Herzogenrath, western Germany on Oct 25, 2016.
The headquarters of chip equipment maker Aixtron is pictured in Herzogenrath, western Germany on Oct 25, 2016. PHOTO: AFP

BEIJING (REUTERS) - China's Foreign Ministry expressed displeasure on Monday (Dec 5) after President Barack Obama blocked a Chinese investment fund from acquiring the US business of German semiconductor equipment maker Aixtron .

Mr Obama's executive order barring China's Fujian Grand Chip Investment Fund (FGC) from completing the acquisition of a German company with American assets was one of only a few such instances in which a US president has blocked a transaction due to national security concerns.

Chinese Foreign Ministry spokesman Lu Kang said the government had always supported Chinese firms investing overseas on the basis of market principles, international rules and respecting local laws.

The Aixtron deal is purely a commercial matter, he added.

"China resolutely opposes the politicisation of any normal commercial takeover or the wrong move of political obstruction," Mr Lu told a daily news briefing.

China hopes the US stops making "groundless accusations" against Chinese firms and provides a fair environment for them, he added.

Reuters could not immediately contact Fujian Grand Chip to seek comment.