Citibank reportedly has given up its bid to become the first overseas company to own a controlling stake in a mainland China bank, according to Bloomberg News. Citigroup had been waiting for the Chinese government to waive a rule barring overseas companies from owning more than a 19.9% stake. But in the end, China would not relent, a move that scuttled Citibank’s sought-after 40% of Guangdon Development Bank.

“There’s real concern about losing control of the banking system and fears that the local banks have no way to compete with the more sophisticated foreign banks,” Stephan Rothlin of the Shanghai-based Center for International Business Ethics, told Bloomberg News.