Trump Move to Block Chip­maker Deal Bad for Amer­ica

Iran News - - WORLD NEWS -

SHANG­HAI (Dis­patches) - 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 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 China’s 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 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.

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