, Columnist
Philips Dims Lights on China
The scrapping of the Lumileds deal shows the country's challenge in gaining overseas technology.
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The U.S. is cranking up the heat on China's overseas ambitions, blocking Royal Philips's $2.8 billion sale of its LED business to a Chinese-backed private equity fund just weeks into the new year. Thwarting that sale on national security grounds threatens a deeper Chinese ambition: Creating a credible car brand.
It's no secret that China has been buying up global assets, with overseas technology and brands ranking high on the nation's shopping list. Outbound deals are running at a record pace this year. What's less appreciated is that much of China's M&A in the past year has been directed at another, more specific failing: the lack of domestic car brands in the world's largest vehicle market.