President Barack Obama issued an executive order which prohibits China’s Fujian Grand Chip Investment Fund from acquiring the U.S. business of German semiconductor equipment maker Aixtron, the Treasury Department said on Friday.
The White House said it was blocking the deal following an assessment done by the Committee on Foreign Investment in the United States, an inter-agency task force led by the Treasury Department.
“CFIUS and the president assess that the transaction poses a risk to the national security of the United States that cannot be resolved through mitigation,” the department said in a statement.
Aixtron has said that the deal would be called off if the U.S. president opposed it.