Mr. Trump blocked the move on the grounds that it threatened national security, with worries that Chinese interests could lead Broadcom to slow Qualcomm’s research and development of technologies such as semiconductors. This could give China a technological edge over the U.S. that President Trump’s administration wanted to stifle.
“With this action, the Trump administration is signaling that it will act to protect U.S. economic and national security, which are increasingly viewed as one and the same thing when confronting the rise of China as a technology power,” Paul Triolo, the head of global technology for the risk-consulting firm Eurasia Group, told The New York Times.
However, Jason Furman, an economic adviser to former President Barack Obama, worries this protectionist policy could force other nations to adopt similar measures.
“If every country in the world conducted policy like that, it would make cross-border investment difficult to the detriment of American and foreign companies,” Mr. Furman told The New York Times. “Foreign direct investment is an important part of the strength of the U.S. economy.”
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