Trump blocks sale of US tech firm to Chinese company | daily-sun.com

Trump blocks sale of US tech firm to Chinese company

Sun Online Desk     14th September, 2017 12:23:22 printer

Trump blocks sale of US tech firm to Chinese company

 

The Trump administration has barred the sale of a US technology firm to a Chinese-backed company, citing national security risks.

 

Since November, Chinese-backed Canyon Bridge Capital Partners has been seeking approval for a $1.3bn (£984m) deal to buy Lattice Semiconductor.

 

The firms said they were "disappointed" by the decision.

 

The order comes as the US has been toughening its stance on business dealings with China.

 

The US last month launched a formal review of China's intellectual property practices, which it says may force US companies to surrender valuable information.

 

US politicians and military leaders have also urged the administration to take a closer look at Chinese investments in the US, particularly in the technology industry.

 

Mr Trump's decision was in line with an earlier recommendation by the US government panel that reviews foreign transactions for national security considerations.

 

That step typically decides such matters, but the companies made the rare move to appeal directly to the president in an effort to win approval.

 

 

It had also pledged to double the number of US jobs in a bid to win approval.

 

The company, which is backed by the China Venture Capital Fund, said it would continue to pursue other investments. The China Venture Capital Fund is owned by state-owned entities, according to the US.

 

Mr Trump's decision is the fourth time a president has barred a private deal on national security grounds.

President Barack Obama used that authority twice, in both cases against Chinese companies.

 

In 1990, President George HW Bush also blocked a Chinese company from acquiring a Seattle manufacturer.

 

The decisions have come as Chinese investment in the US surged, exceeding $46bn in 2016, triple the amount in 2015, according to the Rhodium Group.

Chinese investors are on track to surpass that number this year.

 

Other deals waiting approval include Jack Ma's Ant Financial bid to buy US money transfer company MoneyGram for $1.2bn.

 

China Oceanwide Holdings Group is also seeking approval of its $2.7bn acquisition of US insurance company Genworth Financial.

 

US politicians have urged rejection of other deals as well, including a bid to buy to the Chinese stock exchange.

 

Source: BBC


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