Trump move to block chipmaker deal bad for America - Xinhua

Trump move to block chipmaker deal bad for America - Xinhua

Reuters  | Sep 16, 2017 08:30

Trump move to block chipmaker deal bad for America - Xinhua

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

Canyon Bridge Capital Partners' planned $1.3 billion (£956.5 million) acquisition of Lattice Semiconductor Corp (O:LSCC) 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 China's central government and had indirect links to its space programme.

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 America's 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.

Security reviews of investments in sensitive sectors "should not be used as a tool to implement protectionism", it added, echoing comments by a Commerce Ministry spokesman last week.

Citing analysts who said Trump's decision was made with an eye to the 2018 midterm election, Xinhua called it "penny wise and pound foolish ... It is a short-sighted move to take protectionist measures amid sluggish global growth."

"Chinese investment is not 'Trojan Horse' with hidden purposes," it said.

Trump is set to visit China in November.

© Reuters. Illustration photo of the Lattice Semiconductor logo

"The two countries need to strengthen dialogue and communication, promote cooperation and exchanges in various fields and properly handle issues of common concerns. Only then can China and the United States push forward the world's most important bilateral relationship," Xinhua said.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+