China veto a wake-up call for world's dealmakers

[HONG KONG] Chinese regulators have sunk their first overseas transaction, killing a container-shipping alliance led by Denmark's Maersk . The particular national interest made this tie-up especially vulnerable. But there's a real risk China could torpedo other global deals.

Antitrust blocks from China are rare. Though Beijing has made acquirers such as Glencore wait months and agree concessions to win approval, this is the first time the Ministry of Commerce has denied a deal between non-Chinese firms. And it's only the second-ever "no" since the regulator blocked Coca-Cola's attempt to buy juice-maker Huiyuan in 2009.

This is a reminder of the wide-ranging powers granted under China's refreshed competition law six years ago. None of the parties to the deal were Chinese. But groups need only make US$64 million in annual sales in the People's Republic to face scrutiny.