• China’s antitrust regulator SAMR’s review of US-backed mergers could become politicized
• Chinese authorities are probing into Apple and Google, and have taken other non-tariff retaliatory measures

Synopsys [NASDAQ:SNPS] could find its plan to take over Ansys [NASDAQ:ANSS] faces more intense regulatory scrutiny in China as a result of US President Donald Trump’s announcement of new tariffs on the Asian giant over the weekend.

The deal, announced in January 2024, will create a new US player worth USD 35bn, which aims to take a “silicon-to-systems approach to innovation” focused on technology research and development (R&D).

However, a review of the deal by China’s antitrust enforcer, the State Administration for Market Regulation (SAMR), could become increasingly politicized as a result of Trump’s tariff plan.

SAMR also began an antitrust investigation into the US tech giant Apple [NASDAQ:AAPL] for potential antitrust violations in relation to its App Store, as reported in January. The day after Trump’s tariffs went into effect, China also announced a probe into American national champion Google owner Alphabet [NASDAQ:GOOGL]. It is thought that actions away from tariff tit-for-tat could be used to gain leverage in a trade war.

Reuben Miller, Mergermarket’s global chief regulatory editor, based in Washington DC, joins Dealcast host Julie-Anna Needham to discuss the multi-fold impact of tariffs on dealmaking.

• China and the US are currently circling each other like fighters. Why does he see this as “a delicate dance”?
• Could Trump’s threat of tariffs on allies and competitors be a catalyst for demand for US manufacturing assets?
• Are the threats a negotiating position to gain concessions or a real statement of intent?

All this and more in this week’s Dealcast, which was recorded on Tuesday 4 February.