China says Qualcomm's acquisition plan 'has difficulty' resolving concerns

China on Thursday finally reacted to Qualcomm Inc.'s proposed acquisition of NXP Semiconductors. The government noted that the proposed $44 billion acquisition plan "has difficulty" resolving concerns of anti-monopoly regulators.

China has been withholding approval of the deal which aims at allowing Qualcomm to broaden its product range. 

A finance ministry spokesperson noted that Qualcomm, on Monday, withdrew its proposal for the deal and submitted a new plan.

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Meanwhile, the American chip maker Qualcomm Inc on Wednesday announced cutting jobs as part of its promise to investors to cut annual costs by $1 billion.

"Qualcomm is conducting a reduction of our full-time and temporary workforce," a company spokesperson who declined to be identifies said, without disclosing the exact numbers of job cuts.

Though the company first evaluated non-headcount expense reductions, it concluded that a workforce reduction is needed to support long-term growth and success, the spokesperson said.

Qualcomm had in January said it would implement a series of targeted reductions across businesses to save $1 billion in annual costs, as part of its attempt to win over investors support against a hostile bid from rival Broadcom Inc. 

The bid, however, was cancelled by the Trump administration on national security grounds.

The chipmaker has been ramping up its operations since then to improve earnings growth.

(With inputs from agencies)