HUNTER CALLS ON PRESIDENT TRUMP TO BLOCK QUALCOMM DEAL PENDING SECURITY REVIEW

Mar 19, 2018 Issues: National Security

Washington, DC -- Congressman Duncan Hunter (CA-50), a member of the House Armed Services Committee, sent a letter to President Trump requesting that he utilize his authority under federal law to order a national security review of Broadcom Limited’s proposed takeover of San Diego-based Qualcomm, a world leader in high-speed communications.  Such action poses a direct national security threat and would have adverse effects on the San Diego economic and job market.

“Under the Defense Production Act of 1950…you have the authority to block foreign acquisitions of U.S. companies where such acquisitions would pose a threat to national security,” wrote Congressman Hunter.  “The high-speed communication industry is as important to American security today as the steel industry was to the United States during World War II.”

Congressman Hunter emphasized that the company attempting the takeover of Qualcomm is already under review by the administration for its pending acquisition of Borcade Communications Systems with China, reflected by its recent agreements with three Chinese companies; HBC, Inspur and StarTimes.  It has been reported that while recent meetings between company executives have stalled, takeover efforts are being directed at Qualcomm shareholders.  Hunter stated that “such a company could, if motivated by a nation or groups not friendly with the United State, compromise critical communications and install lock out features that would prevent U.S. security teams from monitoring mobile data.”

Finally, Hunter asserted that “the thousands of Americans who comprise the Qualcomm creative team could lose their jobs or be moved off-shore, which would be a major loss for our nation.”