Rejected on September 13, 2017
On Wednesday, September 13th, a federal board blocked the 1.3 billion dollar Chinese acquisition of Lattice Semiconductor, an American company based in Oregon. The board cited national security concerns related to the deal, and there has been some evidence of relations between the Chinese company and government. In the past 30 years, there have been only three other such rejections of acquisitions made by the President. Lattice announced they would cancel the proposed sale. LEARN MORE
It’s unclear whether or not the claim of endangered national security is substantiated, but this denial will not help US-Chinese relations. Amid other rising tensions, this trade acquisition was intended to smooth over some ties between the two countries. Lattice claimed it would be able to double its employees, and both companies assured the board that there were no national security risks at play. Furthermore, the Chinese Communist Party will hold its Congress in October, something that only happens once every five years. While it’s unclear to the general public whether or not this denial is justified, it will definitely harm the relationship between China and the United States.
- Committee on Foreign Investment in the United States — See how the board which monitors Foreign Investment operates
- Capitol Hill Reaction — See how Senate Democrats believe CFIUS should act in the North Korean Crisis
This brief was compiled by Jacob Malinowski. If you have comments or want to add the name of your organization to this brief please contact firstname.lastname@example.org.