China condemns protectionism after Lattice deal blocked

September 14, 2017 // By Peter Clarke
China's Ministry of Commerce has said that national security reviews of foreign investment should not be used for protectionism, according to Xinhuanet, a subisidiary of the official press agency of the People's Republic of China.

The ministry made the remarks after US President Donald Trump had issued an order blocking the acquisition of FPGA chip firm Lattice Semiconductor Corp. (Portland, Oregon) by a US private equity company that was financially backed by Chinese funds (see President Trump bans Lattice deal ). The order backed up the previous recommendation of the US Committee on Foreign Investment in the United States (CFIUS).

Ministry spokesperson Gao Feng told a press conference that China is concerned about the US decision, a Xinhuanet report said.

Gao also said that while each country has the right to investigate foreign investment in sensitive sectors that should not be used for protectionism. Gao added that a Chinese company acquiring a foreign business should be seen as normal market practice and should be treated fairly and objectively.

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