China Is Said to Push Qualcomm for More Remedies in NXP Deal

China’s regulators are seeking more protections for local companies before approving Qualcomm’s proposed purchase of NXP, according to Bloomberg, citing people familiar with the matter.

China’s Ministry of Commerce isn’t satisfied with the remedies that Qualcomm has offered and has told the U.S. chipmaker to propose more, said the people, who asked not to be identified. Many Chinese companies are lobbying the powerful ministry, arguing the deal will hurt them and should be blocked. They’re particularly concerned the combined entity would extend Qualcomm’s patent licensing business into the areas of mobile payments and parts for autonomous driving systems.

China, the world’s largest importer of semiconductors, seeks to build a world-class chip industry and further wean the country off a reliance on foreign technology. The government is said to be raising as much as $31.5 billion to invest in homegrown chip companies.

China is the biggest worldwide market for semiconductors yet doesn’t have a company that ranks among the top ten producers. Its government has made developing a domestic chip industry a national priority, allocating funds for local champions. Part of that push has been stalled by the U.S. government’s blocking attempts by Chinese entities to buy assets.