China urged the US to stop interfering foreign corporate merger and acquisitions, after outgoing US President Barack Obama blocked the sale of Germany's Aixtron SE to China's Grand Chip Investment GmbH because it reportedly poses national security risks.

"China opposes politicizing normal business behavior or political interference," Lu Kang, China's Foreign Ministry spokesperson, said.

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China sought to close a takeover agreement with the German chipmaker; however, Obama blocked the $715 million deal by not allowing Aixtron's US arm to be included in the sale, the News.au reported.

Obama on Friday said Fujian Grand Chip Investment Fund must fully and permanently abandon its proposed acquisition of Aixtron Inc., which is a subsidiary unit of Aixtron SE in the US, the Global Times noted citing the president's executive order.  

Aixtron's US arm employs nearly one-fifth of its over 700 employees, thus allowing the president to veto the agreement.

The US allegedly voiced its concern that the sale would bolster China's nuclear program. The US Treasury Department said that they blocked the deal because of Aixtron's knowledge and experience in the field of military applications.

China, in response, asked the US government to stop throwing suspicions and hampering deals.

"We hope the US side can stop making groundless accusations against Chinese companies and provide a fair environment and good conditions to Chinese investments," Lu said.

He further added that the Chinese government has always encouraged Chinese companies to invest abroad as long as they abide on local laws, market rules, and principles.

Meanwhile, Aixtron noted that Obama's order was only applicable to its US arm and did not forbid the sale of its shares. This created hopes for some analysts that the agreement could be revived but under revised terms, according to the Shanghai Daily.

TagsAixtron, Fujian Grand Chip Investment Fund, Aixtron News, Aixtron Acquisition, Aixtron takeover, Barack Obama