According to foreign media reports, it’s said that Chinese technology companies, including Huawei, have expressed strong concerns about Nvidia’s plan to acquire ARM to domestic regulators, which may lead to the abortion of the $40 billion transaction.

According to related sources, several of China’s most influential technology companies have been communicating with China’s State Administration for Market Regulation, hoping that the department will either reject the deal or add additional conditions to ensure that they can continue to use ARM’s technology. The most worrying issue for these companies is that Nvidia may force ARM to stop cooperating with Chinese customers.

NV is trying to acquire British-based ARM from Japan’s SoftBank Group, which will put ARM under the jurisdiction of the United States. In theory, this will cause ARM to lose its neutral position in the chip industry. Today, SoftBank’s share price in the Japanese stock market closed slightly lower.

Bloomberg Intelligence analyst Anthea Lai said that allowing NV to acquire ARM may make it difficult for Huawei to obtain ARM’s chip design. The ARM architecture is the foundation of Huawei’s series of products, including smartphone processor Kirin, server chip Kunpeng, and AI chip Shengteng.

Huawei declined to comment on this news. Nvidia’s speech referred to the company’s CEO Huang Renxun’s earlier statement, saying that he is confident that the transaction will pass the review.

Nvidia’s record acquisition of ARM has always been considered to encounter regulatory obstacles, and ARM’s customers are also worried that this transaction will affect future competition and cause the new owners of ARM to gain an unfair advantage.

Nvidia is one of the main suppliers of computer processors and high-end computing processors, and it has a competitive relationship with Intel, Qualcomm and Huawei. ARM’s design and instruction set are indispensable elements in a large number of mobile phones, self-driving cars and sensors, and are becoming more and more important for servers and laptops.

ARM has maintained a neutral position before and has achieved rapid development. The company licenses technical designs to hundreds of companies, and no company competes with them in design. Industry executives believe that it is in ARM’s best interests to maintain ARM’s neutral position and avoid alienating potential customers.

This transaction currently needs to be approved by China, the United Kingdom, the European Union and the United States. Regulators in various countries will seek the opinions of customers and competitors. Nvidia and ARM expressed confidence in solving the problems, but it may take up to 18 months to obtain the necessary approvals.