In a bid to secure a $69 billion deal, Broadcom Inc. (NASDAQ:AVGO) CEO, Hock Tan, shelled out $40,000 to dine with China’s President, Xi Jinping. This dinner, held during Jinping’s recent meet-up with American business magnates in San Francisco, has sparked discussions over the future of U.S.-China corporate interactions.
What Happened: Tan’s costly dinner was aimed at getting the Chinese government’s approval for Broadcom’s takeover of software developer VMware, The Wall Street Journal reported. Since its announcement in May 2022, the deal has been hindered thrice by Chinese regulators.
In a surprising turn of events post the dinner, China gave the nod to Broadcom’s proposal, along with approving Mastercard Inc. (NYSE:MA) to issue yuan-denominated cards in the country. These approvals are interpreted by some as China’s peace offering to U.S. firms amid the escalating geopolitical discord between the two countries.
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