Why did Trump stop China from buying American chipmakers?

On Wednesday, Trump vetoed a China-backed private equity firm's acquisition of American chipmaker Lattice Semiconductor.

According to relevant media in the United States, the President of the United States has the final decision on whether to suspend or prohibit such investment projects, which is the first time that Trump has encountered such cases during his tenure. This is also the fourth corporate merger report submitted to the president's desk in 30 years.

Foreign media: The White House issued a statement saying that "China Venture Capital Fund Co., Ltd." is a subsidiary of China's state-owned enterprises. Due to the supporting role played by the China government in this transaction, the possibility of related intellectual property rights flowing to foreign companies, the importance of the semiconductor industry supply chain to the US government, and the fact that the US government is using the products of Ledis Semiconductor, this transaction is prohibited for national security reasons.

According to reports from relevant US news agencies, Trump stopped the transaction, "releasing a clear signal that the US government will oppose M&A transactions involving potential military applications." The deal caught the attention of American defense officials.

Earlier, on September 8, Ledis Semiconductor, a Nasdaq-listed company in the United States, announced that it would submit a merger and acquisition plan to the White House for approval. The company plans to sell it to Canyon? Bridge? Capital).

Another American media reported that Canyon Bridge Capital Company is ostensibly a company located in Palo Alto, Silicon Valley. Alto), but its main office is in Beijing. According to regulatory documents, a large part of its venture capital fund is owned by China State-owned Asset Management Company.