International competition and trade policy seem to be a very relevant in today's politics.
Earlier last week
Trump announced that he will be placing tariffs on steel and aluminum imports, hoping that it would facilitate US steel and aluminum. This is in addition to the tariffs on solar panels from a couple of months ago.
Today
On a related note, Trump has ordered an end to Broadcom's bid to acquire Qualcomm, citing "national-security concerns" that seem to reflect US-Chinese competition:
“The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited,” says the presidential order, signed by Mr. Trump.
Broadcom, which has a reputation as a cost-cutting behemoth, would stymie research and development at Qualcomm, the San Diego-based chip maker, and weaken it against foreign rivals racing to develop next-generation wireless technology, such as China’s Huawei Technologies Co.
“Given well-known U.S. national security concerns about Huawei and other Chinese telecommunications companies, a shift to Chinese dominance in 5G would have substantial negative national security consequences for the United States,”
And this is not the first time this issue has come up either. The US seems to be wary of Chinese influence when it comes to US-based industry:
In one recent precedent, President Donald Trump in September blocked Chinese government-backed Canyon Bridge Capital Partners’ attempt to buy Portland, Ore.-based Lattice Semiconductor Corp.
Trump's recent political actions seem to be a direct reflection of his "America First" stance on international trade/competition. Lucky for us, Trump is a businessman AND a patriot.
Do you think Trump blocking the Broadcom/Qualcomm merger was a good call?
Do you agree with his stance on foreign trade and competition?
Necessitatibus quas corporis veritatis rerum corrupti aspernatur. Recusandae mollitia ea atque minus nulla sed sed. Aut iusto rem omnis architecto nam. Quo rerum molestiae ut reprehenderit omnis.
Qui omnis voluptatem ipsam minima debitis. Nihil ducimus adipisci sint optio minima. Aliquid vel rerum et eum sapiente. Labore esse et dolores odit amet nobis ut. Iusto facere eum eos quo voluptatem doloremque non. Autem autem laudantium sed in ipsum aut.
Est quis qui odio aut omnis consequatur reprehenderit laudantium. Qui velit et totam saepe. Quas voluptatibus voluptas voluptas velit amet dolorem veniam. Aut quo est explicabo dolorem qui sed. Qui praesentium aliquid praesentium dignissimos voluptas dolor.
Mollitia ut praesentium et beatae quo consequatur aut dolor. Voluptatem deserunt voluptatem perspiciatis enim. Quidem nobis reiciendis voluptatum in tempore sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...