There have been a number of transactions involving Chinese acquisitions and investment in the US recently that have been stalled by the U.S. government.
The Committee on Foreign Investment in the US (CFIUS) raised media attention earlier this week that the inter-departmental agency temporarily suspended Broadcom Ltd. (Singapore-based Broadcom Ltd.) to acquire Qualcomm for $ 117 billion Qualcomm Inc. (QCOM) plans.
In addition to this transaction, CFIUS also questioned a growing number of other transactions in recent months. At the same time, Trump’s government also tried to stop technology from escaping and maintain the US economy for China and other rival countries. And military advantages.
Here are a few deals blocked by CFIUS:
-- UQM Technologies Inc., a Colorado company that develops electric vehicle engines, said on Monday that China National Heavy Duty Truck Group Co. has cancelled its second round investment plan for UQM, citing CFIUS’s deal China National Heavy Duty Truck Group Co., Ltd. currently holds a 9.9% stake in UQM, which is worth about 5.1 million US dollars.According to the two companies reached an agreement in August last year, after the completion of the second round of investment, China Heavy Duty Truck The shareholding of Group Co., Ltd. in UQM will rise to 34%. The two companies stated that they intend to resubmit the application to CFIUS.
- Beijing Dabeinong Technology Group Co. (002385.SZ, abbreviation: Dabeidong) last week canceled its plan to acquire Waldo Genetics, a Nebraska-based swine sales company, Saying it failed to get the approval of the US government in March 2017, Great Northern Peasant reached a $ 16,500,000 acquisition of Waldo's agreement, the reporter failed to immediately contact non-listed company Waldo commented.
- Xcerra Co. (XCRA), a semiconductor and electronics test equipment provider headquartered in Norwood, Mass., Ended last month a sale to a Chinese consortium on the grounds that it would be difficult for CFIUS to approve the $ 580 million deal .
- Ant Financial Services Group (Ant Financial Services Group) and MoneyGram International Inc. (MGI) under Jack Ma said in January CFIUS refused to approve the ants Golden clothing to 1.2 billion acquisition of MoneyGram.
- Last September, at the CFIUS recommendation, Trump blocked attempts by the Chinese government-backed Canyon Bridge Capital Partners to acquire Lattice Semiconductor in Portland, Oregon.
- China HNA Group has for some time been trying to get CFIUS to approve its controlling stake in SkyBridge Capital, an investment firm owned by former White House consultant Anthony Scaramucci.
- China Oceanwide Holdings Group's $ 2.7 billion takeover of US insurer Genworth Financial Inc. (GNW) is also awaiting release of CFIUS.
As China's investment in the United States soared, the unease in the M & A deal started to heat up during Obama's administration and intensified after Trump came to power. A recent censorship of Broadcom marks Qualcomm's pinnacle.
Some members of the U.S. Congress and government departments said that China's investment in the United States may be under the guidance of the Chinese government and may also receive financial support from the government. Given the economic and military rivalry between China and the United States, these investments may give national security Bring a very big risk.
If the Senate majority party whip John Cornyn and the Republican Congressman Robert Pittenger passed the bill put forward in November last year, the road to Chinese investment in the United States may become even more difficult. This motion will further strengthen CFIUS's external investment review, especially Review of transactions in Chinese companies' science and technology fields.
CFIUS is headed by the U.S. Treasury Department and usually does not disclose decision-making and operational details. The Ministry of Finance issued a statement saying that the law prohibits the Ministry of Finance from publicly disclosing the information submitted by CFIUS, and stated that CFIUS focuses on national security issues in the evaluation.