(Presidentialwire.com)- China has been approved by the German government to acquire a German computer chip company after the United States implemented a chip ban leading Western manufacturers out of China, according to The Epoch Times. After the ban, China is reportedly looking to seek more acquisitions in the chip field and increase its production capacity.
The Chinese Communist Party (CCP) is using a Swedish company, Silex Microsystems AB, which is a subsidiary of China’s Sai Microelectronics Group, to acquire Elmos, a Dortmund-based semiconductor company. The German intelligence agency is warning the government against the approval, with the country’s Federal Office for the Protection of the Constitution noting the danger of relying on China for chip production.
Germany’s Ministry of Economic Affairs is currently reviewing the acquisition and is expected to give its final decision within the next few weeks.
As the Epoch Times reports, German Chancellor Olaf Scholz’s decisions have benefited the communist regime at the expense of his country. Scholz recently approved the “Chinese state-owned COSCO Group’s acquisition of a nearly 25% stake in a terminal at the Port of Hamburg.”
Global chip production and deliveries have experienced delays and difficulties since the start of the pandemic. Coupled with rising tensions in Russia and China, chip factory acquisition has led some experts to raise the alarm.
However, speaking about chip competition between Western countries and China, Frank Xie, professor of business at the University of South Carolina–Aiken, considers China’s recent acquisition of Elmos to be inconsequential. Xie claims that it would be “impossible” for China to catch up with the West on chip production because the West has an interdependent alliance in the field.
“It is impossible for the CCP to catch up with more than a dozen of the most advanced industrialized countries in dozens of cutting-edge fields, ranging from laser optics, precision instruments, precision manufacturing, [and] digital machine tools to advanced materials,” Xie said.