Committee on Foreign Investment in the United States (CFIUS)

choi

Today’s news first.

(1) Paul Mozur and Jane Perlez, 中国开发微芯片技术，美国疑虑重重. 纽约时报中文网, Feb 5, 2016
cn.nytimes.com/technology/20160205/c05chinachips/

, which is translated from

Paul Mozur and Jane Perlez, China's Drive into Chips Draws Notice in US; A deal involving Philips is blocked on national security concerns. New York Times, Feb 5, 2016.

Quote:

"United States  "blocked the proposed purchase for as much as $2.9 billion of a controlling stake in a [LED] unit [Lumileds] of the Dutch electronics company Philips by Chinese investors * * * 'There is a belief in the Cfius community that China has become innately hostile and that these aren’t just business deals anymore,' said James Lewis, a senior fellow at the Center for Strategic and International Studies, a research firm, who speaks to people connected with the committee’s process.

"At the center of the committee’s concerns on the Philips deal, according to Mr Lewis, was a little known but increasingly important advanced semiconductor material called gallium nitride. Though not a household name like silicon, gallium nitride, often referred to by its abbreviation GaN, could be used to construct a new generation of powerful and versatile microchips. * * * its [GaN's] resistance to heat and radiation give it a number of military and space applications. * * * One military industry magazine called the material [GaN] the biggest thing since silicon

Note: "The would-be investor in Lumileds, GSR Ventures 金沙江创投, also holds a stake in Lattice Power, a Chinese company that has been vocal about its efforts to develop technology related to gallium nitride and silicon."

Lattice Power (Jiangxi) Corp 晶能光电有限公司


(2) Abheek Bhattacharya, How ChemChina Can Clinch Approval for a Syngenta Deal. Wall Street Journal Feb 4, 2016 (in the half page “Heard on the Street”).
http://www.wsj.com/articles/how- ... syngenta-1454489747

Quote:

"The uncertainty with ChemChina involves US politics. Syngenta is the biggest seller of pesticides in North America, plus a key player in seeds. The US regulators who scrutinize foreign acquisitions list food and agriculture as a critical sector, alongside defense and finance.

A state Chinese firm controlling a key part of the US food supply chain—and during an election year—will surely make US lawmakers nervous. Investors clearly perceive the uncertainty, with Syngenta shares ending Tuesday 17% below ChemChina’s offer price.