Bipartisan Praise for Trump’s Decision to Block Broadcom Bid | NTK Network Bipartisan Praise for Trump’s Decision to Block Broadcom Bid

Bipartisan Praise for Trump’s Decision to Block Broadcom Bid

Democrats, Republicans, and independent analysts alike said the Trump administration made the right call in blocking Broadcom’s hostile takeover attempt.

By NTK Staff | 03.14.2018 @4:00pm
Bipartisan Praise for Trump’s Decision to Block Broadcom Bid

In the wake of the Trump administration’s decision to block the hostile takeover of one chipmaker by another, the Committee on Foreign Investment in the United States (CFIUS) is receiving bipartisan praise.

CFIUS, an inter-agency committee comprised of representatives from 16 departments and agencies, announced Tuesday that it was blocking the hostile takeover of Qualcomm by Singapore-based chipmaker Broadcom. National security concerns, stemming from Broadcom’s close ties to Chinese telecommunications company Huawei, contributed to the decision.

And in an era of bitter partisan bickering in Washington, D.C., the CFIUS decision is receiving rare bipartisan praise. From liberal Democrats to conservative Republicans, Capitol Hill seems to agree: this was the right move.

Here are a few folks praising the decision:

Senate Minority Leader Chuck Schumer (D-NY):

SCHUMER: Let me say unequivocally: President Trump and his administration made the right decision on blocking Broadcom from taking over Qualcomm. We all know that China has been rapacious about trade and very smart. They look for places where they can steal our best technology.

Sen. Tom Cotton (R-AR):

COTTON: I wrote a letter to the secretary of the Treasury, Steve Mnuchin, a couple weeks ago. He’s the chairman of the Committee on Foreign Investment in the United States, urging them to review this potential merger or acquisition, and I think they reached the right decision. Qualcomm is one of the world’s two leading contenders to set all the standards and protocols for the next wireless network, the 5G standards. The other competitor is Huawei, which is a Chinese company that is essentially an arm of the Chinese ministry of state security and People’s Liberation Army. And I thought it would be very detrimental to U.S. security interests and global stability and security to have China essentially setting the global standards for the new wireless network.

American Enterprise Institute’s Derek Scissors:

SCISSORS: Well, there are two sides to this. One is that it was a necessary move, the correct move this was not a company that — Qualcomm is not a company the U.S. could afford to lose technologically. We are in a technological competition with the Chinese. We’re not in an ability to have Qualcomm taken over by another company that is perhaps not committed to that technological competition. So, on the national security side, this was the right move. The economic side, which we’re all aware of, is it would be better if we weren’t so reliant on one company without prejudice to Qualcomm, we need three or four Qualcomms in this space. The companies become too important to U.S. national security, it’s a version of too big to fail it’s too big to be acquired.

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