Trump administration has blocked the sale of a US technology firm, Lattice Semiconductor Corporation, by the Chinese-backed company, Canyon Bridge Capital Partners, citing National security concerns.
The US government reportedly uses Lattice products and they were concerned about the potential transfer of “intellectual property” which would happen as a result of the deal. This move comes amidst the progressively tough stand adopted by the US on business dealings with China.
The decision was taken under the Defence Production Act which authorizes the President to suspend or prohibit certain acquisitions by foreign parties that are deemed to be a threat to national security. The US Treasury Secretary Steven Mnuchin, who is also the chairman of Committee on Foreign Investment in the United States (CFIUS), whose recommendations aided in Trump’s decision, welcomed the move.
The company which has been seeking approval for the $1.3bn deal since November said in their statement that they were” disappointed” by the President’s decision whereas Lattice in their statement said that the shelved deal “was in the best interests of our shareholders, our customers, our employees and the United States”.