China has approved Qualcomm’s $44 billion takeover bid for Dutch semiconductor manufacturer NXP on the condition that the US lift the seven-year ban on US companies doing business with Chinese telecoms firm ZTE, sources told Bloomberg.
China is satisfied with all the offerings and assurances given by Qualcomm regarding market competition following the merger with NXP, but has asked that ZTE be released from its current US-imposed sanctions so that the Chinese company can return to normal operations, according to Bloomberg.
Qualcomm considers NXP crucial for its planned expansion into other markets outside of its core smartphone business. Beijing has delayed the deal for 18 months after Qualcomm secured the go-ahead from eight other major national regulators, but its stance towards the California company has softened following the recent role of tech companies in US-China trade disputes.