[Epoch Times November 28, 2021](The Epoch Times reporter Li Linqing interviewed and reported) The Italian government recently used the “golden power” law to veto a Chinese acquisition for the fourth time. , Or even the establishment of a shell company, the method of using fake mergers and acquisitions to actually steal high-tech is increasingly being seen by the Western world.
The Italian government recently used the “golden power” to veto Zhejiang Kesheng Intelligent Equipment Co., Ltd. (referred to as Kesheng Intelligent Equipment) to acquire Applied Materials, Inc.’s screen printing equipment business in Italy. The reason is that the acquisition may have an impact on Italy’s strategically significant semiconductor industry.
This is the third time that Italian Prime Minister Draghi has vetoed the acquisition of the Chinese Communist Party in the country in nine months since he formed a cabinet.
Kesheng Intelligent Equipment is a new company announced at the end of July. It is jointly invested by Jingsheng Electromechanical and Applied Materials Hong Kong Company of 150 million US dollars. The former holds 65% of the joint venture and the latter holds 35%.
Public information shows that Jingsheng Electromechanical not only exerts its efforts in photovoltaic silicon wafer equipment, but also deploys silicon carbide, sapphire, semiconductor silicon wafer equipment and other businesses, and increases product categories through epitaxial mergers and acquisitions. “Equipment dual field” platform company.
Current affairs commentator Tang Jingyuan believes that “Jingsheng Electromechanical” is a company with a background of military-civilian integration and an important piece of the semiconductor industry layout that the CCP strongly supports. The acquisition of “Applied Materials Hong Kong”‘s business in Italy and other places is only part of Jingsheng’s expansion plan.
“Applied Materials is the world‘s largest manufacturer of semiconductors and display equipment, with revenues of up to 17.2 billion U.S. dollars in 2020. Jingsheng Electromechanical Co., Ltd. cooperated with them to establish a joint venture company. Realize the predatory acquisition, and finally overtake in the corner.” Tang Jingyuan said.
In 2018, when the U.S. Department of Commerce imposed an export ban on ZTE, Cao Jianwei, chairman of Jingsheng Electromechanical, emphasized at a symposium that it is necessary to quickly catch up in improving the ability of “independent innovation”.
Jin Chun, a former senior engineer at Huawei, analyzed The Epoch Times, “Under the totalitarian regime of the CCP, there is no ability to invent and create. It must steal and rob”. However, the CCP’s acquisitions are often not in the name of Chinese-funded companies. It must be accompanied by foreign capital. Shell’s company joint ventures conceal people’s attention and circumvent international regulations or government media investigations.
CCP targets Italian semiconductors and advanced composite materials
Jin Chun said that the direction of the world‘s research and development has changed in the past ten years. Now the core area of the world‘s technology is no longer software, but hardware, such as these semiconductor materials. The Italian company to be acquired this time mainly produces monocrystalline silicon, which is an essential material for the production of chips.
“The purity requirements of this single crystal silicon are extremely high, almost reaching 99.999999%. It is basically a whole piece of silicon without any impurities in it. Only a very small number of companies can produce this product.”
He emphasized, “That’s why the CCP focused on Italian companies because the CCP cannot produce it by itself. It does not have such equipment and technology.” Through a joint venture established with a foreign company, it can transfer technology on the one hand and purchase equipment on the other. Steal manufacturing technology by disassembling equipment.
According to the official website of Applied Materials Italy, the factory in Treviso (Treviso) in northern Italy has advanced screen printing from Applied Materials’ Solar Technology Business Unit, as well as solar cell manufacturing processes.
Jin Chun said that Italy’s screen printing is a cutting-edge technology, using carbon fiber materials.
Carbon fiber has the properties of high temperature resistance, friction resistance, corrosion resistance, electrical conductivity, and heat conduction. It is used in aerospace fields such as aircraft and missiles. The composite material on the surface of the aircraft that realizes the stealth of the radar. Relevant technologies are currently in the hands of Japan and the United States, and there are strict export controls.
In this context, Jin Chun believes that the acquisition of the Italian screen printing business by “Kesheng Intelligent Equipment” involves strategic security and “cannot be a pure commercial activity.” It must be controlled by the CCP, and the purpose is to obtain the Italian company’s Technology, applied to the CCP’s national defense construction and espionage fields.
Italy vetoed CCP acquisitions one after another
Earlier, the Italian drone manufacturer was purchased by a Chinese state-owned enterprise at a high price, involving illegal technology transfer, and was investigated.
The prosecutors in the province of Pordenone, Italy, found that in 2018, a Hong Kong-registered company purchased 75% of the drone company at a price 90 times the market value without the government’s knowledge. The company has three A manager of Chinese nationality.
In the middle of this month, a number of media disclosed that the Italian military drone manufacturer Alpi (Alpi) was acquired, a company that produces military-grade drones for NATO and also has a contract with the Italian Ministry of Defense.
The acquirer is the newly-registered Marius (Hong Kong) Information Technology Co., Ltd., behind which the funders are the Central Vehicle Corporation of the Communist Party of China and an investment group controlled by the Wuxi Municipal Government of Jiangsu Province.
The prosecution determined that Marius was a shell company established by the CCP to acquire Alp.
Jin Chun stated that lies and violence are the basis of the CCP’s rule. Violence cannot be used against the CCP in Italy, but can only be deceived, so he “does something like white gloves like a Hong Kong joint venture private enterprise”.
Regarding the repeated use of the “golden power” by the Italian government to veto Chinese acquisitions, Jin Chun believes that “this is a wise move, and it is a good thing for the free world.”
Analysis: Decoupling of the United States and Europe from the CCP’s Science and Technology Cooperation
Current affairs commentator Tang Jingyuan believes that Italy’s four veto of mergers and acquisitions by the Chinese Communist Party has far-reaching influence in Europe.
He said that Italy, as a major member of the European Union and a G7 member state, was very pro-communist in the past.
Tang Jingyuan emphasized: “Now Italy has continuously rejected CCP companies’ acquisition projects in sensitive areas, and it has released a very clear signal: European developed countries have a more sober understanding of the CCP’s fake cooperation and real penetration methods. To a certain extent, This is a sign that developed countries in Europe and the CCP have begun to decouple from science and technology.”
He believes that the first meeting of the US-EU Trade and Technology Committee held in Pittsburgh between the United States and the European Union in September this year was actually a meeting between the United States and Europe to coordinate technological competition against the CCP and prevent sensitive technologies from being stolen by the CCP.
“The content of the meeting covers supply chain security, data governance, export control, etc. This meeting is a guiding meeting for the gradual decoupling of selective technology between the United States and Europe and the CCP.” It does matter. This trend will only intensify and deepen.”
Editor in charge: Sun Yun#