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Downside is it sends a clear message. Foreign businesses should not invest here. Or does it? You seem closer to the action.
by hshdhdhehd 1y ago
Downside is it sends a clear message. Foreign businesses should not invest here.
Or does it? You seem closer to the action.
- jacquesm 1y agoNo, that's not the message it sends at all. It says: what's in the contracts matter. NL - and in consult with a lot of other countries that have a stake in this - gave conditional permission for this deal. That allowed the Chinese company to take effective control while still protecting the various interests in the IP and in the continuity of the company. NXP is not just a fab, it is much more than that and as such it is critical infrastructure for a large swath of EU and US industry. That's why I believe the sale was a mistake, but I can see how if the counterparty promises to abide by certain restrictions that they let the deal go through. What happened now is a direct result of activity related to bypassing those restrictions. The fact that this is a mechanism that has been only extremely reluctantly used is proof positive that NL is open for business, and I'm pretty sure this will have immediate consequences for further acquisitions of EU tech by Chinese companies.
- hshdhdhehd 1y agoThanks. That is very interesting. Smart government you have to write decent contracts.