The New U.S.-China Rivalry: A Technology Race
- 6 years ago
The New U.S.-China Rivalry: A Technology Race
“That implies technologies with 5G, artificial intelligence, biotech
and automation are now considered more sensitive and part of a national innovation base that needs to be protected.”
Broadcom said it was cooperating with Cfius, saying it was “making the combined company a global leader in critical 5G
and other technologies.” Qualcomm, in an earlier statement, said the review was a “very serious matter.”
The letter and the call for an investigation reflect the newly forceful position of Cfius.
Adding to the scrutiny, the United States Trade Representative has also opened an investigation into whether China is “harming American intellectual property rights, innovation or technology development.” One concern is
that American companies have been forced to hand over technology, create joint ventures and otherwise help homegrown players, in exchange for access to the Chinese market.
The clash erupted in public on Tuesday after the United States government, citing national security concerns, called for a full investigation
into a hostile bid to buy the American chip stalwart Qualcomm — a review that is often a death knell for a corporate deal.
“China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile
takeover,” a United States Treasury official wrote in a letter calling for a review of the deal.
The panel, which is led by the Treasury Department
and made up of representatives from multiple agencies, has the authority to block foreign acquisitions of American companies for national security reasons; it has effectively killed several acquisitions linked to Chinese buyers over the past year.
“That implies technologies with 5G, artificial intelligence, biotech
and automation are now considered more sensitive and part of a national innovation base that needs to be protected.”
Broadcom said it was cooperating with Cfius, saying it was “making the combined company a global leader in critical 5G
and other technologies.” Qualcomm, in an earlier statement, said the review was a “very serious matter.”
The letter and the call for an investigation reflect the newly forceful position of Cfius.
Adding to the scrutiny, the United States Trade Representative has also opened an investigation into whether China is “harming American intellectual property rights, innovation or technology development.” One concern is
that American companies have been forced to hand over technology, create joint ventures and otherwise help homegrown players, in exchange for access to the Chinese market.
The clash erupted in public on Tuesday after the United States government, citing national security concerns, called for a full investigation
into a hostile bid to buy the American chip stalwart Qualcomm — a review that is often a death knell for a corporate deal.
“China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile
takeover,” a United States Treasury official wrote in a letter calling for a review of the deal.
The panel, which is led by the Treasury Department
and made up of representatives from multiple agencies, has the authority to block foreign acquisitions of American companies for national security reasons; it has effectively killed several acquisitions linked to Chinese buyers over the past year.