U.S. Blocks Chinese Firm From Buying Key Chip Technology

President Donald Trump has stopped a Chinese company from buying U.S. technology used in digital chips. He signed an executive order to cancel the deal on Monday. The order blocks China's HieFo from buying specific assets from the American company Emcore. The White House said the deal threatened national security. This action uses special powers given to the president to review foreign investments. Officials can stop deals that involve critical technology if they see a risk. The targeted Emcore assets are important for making digital chips. These chips are used in many devices, from smartphones to defense systems. The U.S. government is increasingly scrutinizing technology deals with Chinese firms. Officials cite concerns about espionage and the strengthening of China's military. Both HieFo and Emcore must now fully drop the planned transaction. Failure to comply with the order could lead to severe penalties.