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Trump Closes Gate for Chinese Investor on Lattice Acquisition

Trump Closes

Churning America-China socio-economic feud, Trump administration has lately blocked the sale of an American semiconductor company to a Chinese-backed firm.

Calibrating it as a national security concerns, Trump issued an order barring the acquisition of Lattice Semiconductor Corporation (Lattice) – China Venture Capital Fund Corporation Limited (CVCF), White House Press Secretary Sarah Sanders said early this week.

CVCF is a Chinese corporation wholly-owned by Chinese state- owned that regulates industrial investments and venture capital.

The decision was drafted under Defense Production Act, which authorize him to suspend or prohibit certain acquisitions that result in foreign control of an American business if he concludes, among other things, that there is credible evidence that the foreign interest exercising control might take action that threatens to impair the national security of the US, Sanders said.

Trump reached this decision upon consideration of the appropriate factors and a review of a recommendation from the Committee on Foreign Investment in the US.

“The national-security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the US government, and the use of Lattice products by the United States government,” Sanders said.

In his order Trump said there is “credible evidence” that leads him to believe that this acquisition might result in action that threatens to impair the national security of the US.

The US Treasury Secretary Steven Mnuchin welcomed the presidential decision. He is also chairman of Committee on Foreign Investment in the United States (CFIUS).

“CFIUS and the President assess that the transaction poses a risk to the national security of the US that cannot be resolved through mitigation,” Mnuchin said.

“The national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the US government, and the use of Lattice products by the US government,” Mnuchin said.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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