Why Trump Deemed A Business Deal A National Security Concern

A Chinese-linked company called Canyon Bridge planned to buy Lattice Semiconductor for $1.3 billion.
Posted at 12:12 PM, Sep 14, 2017

President Donald Trump just blocked a Chinese company from buying out a U.S. semiconductor manufacturer, citing national security concerns.

But what would be so dangerous about that business deal? Let's start from the beginning.

Lattice Semiconductor makes computer chips.

These chips can be used in communications, computing and military settings. And the White House statement cites " the use of Lattice products" by the U.S. government.

A Chinese-linked company called Canyon Bridge Capital Partners Inc. had planned to buy Lattice for $1.3 billion.

But federal investigators followed the money and say the real investor behind this deal is the Chinese government.

And the Trump administration wasn't too keen on having a U.S. government's supply of chips partly relying on a foreign power.

Beyond chip supply, the Trump administration worried about Chinese access to Lattice's intellectual property.

Bloomberg notes American officials don't want China to get its hands on cutting-edge tech that it could use for its military.

On Thursday, a Chinese government spokesman said the U.S. is being overprotective of its industry.

But while it's rare for a president to block a foreign acquisition, Trump's not the first to do it in this context.

In a similar deal, President Barack Obama blocked a Chinese company from buying a different semiconductor producer last December. 

Obama also cited military and security concerns.