Advertisement

Trump move to block chipmaker deal bad for America - Xinhua

Trump move to block chipmaker deal bad for America - Xinhua
From Reuters - September 16, 2017

SHANGHAI (Reuters) - U.S. President Donald Trumps decision to block a Chinese-backed firm from buying a U.S.-based chipmaker this week is detrimental to Americas growth and the global economy, Chinas state news agency Xinhua said in a commentary on Saturday.

Canyon Bridge Capital Partners planned $1.3 billion acquisition of Lattice Semiconductor Corp was one of the largest attempted by a Chinese-backed firm in the U.S. microchip sector and was the first announced deal for the buyout fund, which launched last year with a focus on technology investment.

U.S. regulatory scrutiny grew after Reuters reported in November that Canyon Bridge was funded partly by capital from Chinas central government and had indirect links to its space program.

Trump said in an executive order on Wednesday that Lattice and Canyon Bridge shall take all steps necessary to fully and permanently abandon the proposed transaction within 30 days.

The move, which is detrimental to both Americas growth and global economic recovery, also runs counter to the mutually-beneficial and win-win nature of China-U.S. relations, the Xinhua commentary said.

Advertisement

Continue reading at Reuters »