Haier, China's largest appliance maker, has withdrawn from a $1bn-plus bid battle for its US rival Maytag because of concerns over price, the complexities of integrating the two businesses, and fears of a US political backlash, according to people close to the situation.

The decision announced late on Tuesday night by Haier and two US private equity partners is in contrast with the determination shown so far by CNOOC, China's third-largest oil producer, to overcome similar issues in its dogged pursuit of the US group Unocal.