The Trump administration refuses to be cowed by China. Late Wednesday afternoon it was announced that the president had blocked a Chinese-supported investor from acquiring an American tech firm.
“Consistent with the administration’s commitment to take all actions necessary to ensure the protection of US national security, the president issued an order prohibiting the acquisition,” Treasury Secretary Steve Mnuchin said in a statement.
Chinese private equity firm Canyon Bridge Capital Partners LLC was negotiating for control of American company Lattice Semiconductor Corp when President Trump squashed the sale. China has been attempting to advance itself by purchasing American technology for years.
The White House claims that the national security risks attending such acquisitions include “the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States government, and the use of Lattice products by the United States government…”
Trump has adopted a much tougher stance toward China than his predecessor. Multiple high-profile deals between Chinese and American companies are now under review. Economists believe that if China continues to gobble up American companies, it could hurt the U.S. in the future.
Lattice officials fought vehemently to save its $1.3 billion sale to Canyon Bridge.
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(Source: New York Post)