SHANGHAI: US President Donald Trump’s decision to block a Chinese-backed firm from buying a US-based chipmaker this week is detrimental to America’s growth and the global economy, China’s state news agency Xinhua said in a commentary on Saturday.
Canyon Bridge Capital Partners’ planned $1.3 billion acquisition of Lattice Semiconductor Corp. was one of the largest attempted by a Chinese-backed firm in the US microchip sector and was the first announced deal for the buyout fund, which launched last year with a focus on technology investment.
US regulatory scrutiny grew after Reuters reported in November that Canyon Bridge was funded partly by capital from China’s central government and had indirect links to its space program.
Trump said in an executive order on Wednesday that Lattice and Canyon Bridge “shall take all steps necessary to fully and permanently abandon the proposed transaction” within 30 days.
“The move, which is detrimental to both America’s growth and global economic recovery, also runs counter to the mutually-beneficial and win-win nature of China-US relations,” the Xinhua commentary said.
Security reviews of investments in sensitive sectors “should not be used as a tool to implement protectionism,” it added, echoing comments by a Commerce Ministry spokesman last week.
Citing analysts who said Trump’s decision was made with an eye to the 2018 midterm election, Xinhua called it “penny wise and pound foolish ... It is a short-sighted move to take protectionist measures amid sluggish global growth.”
“Chinese investment is not ‘Trojan Horse’ with hidden purposes,” it said.
Trump is set to visit China in November.
“The two countries need to strengthen dialogue and communication, promote cooperation and exchanges in various fields and properly handle issues of common concerns. Only then can China and the United States push forward the world’s most important bilateral relationship,” Xinhua said.
Trump move to block chipmaker deal bad for America — Xinhua
Trump move to block chipmaker deal bad for America — Xinhua
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
