The Committee on Foreign Investment in the US seems to be preparing to block the purchase of Lattice Semiconductor Corp, a maker of chips for civilian electronics, by Canyon Bridge Capital Partners, a company backed and funded by the government of the People’s Republic of China. This is upsetting the deal’s backers.
Lattice management and other deal backers think we should all be “satisfied with their efforts to address national security concerns,” and they’re preparing to appeal to President Donald Trump to overrule the expected CFIUS decision. This is nonsense. Canyon Bridge is an arm of the PRC government; it isn’t possible to address successfully national security concerns when the government of an enemy is involved in buying one of our technology companies.
CFIUS is correct, if expectations of its ruling prove accurate, and Trump would be wise to decline to overrule.
Update: President Trump has, in fact, declined to overrule, on national security grounds.
“Credible evidence leads me to believe” the buyers of Lattice “might take action that threatens to impair the national security of the United States,” Trump said in his order.