Presidential order: a Chinese company to sell the US StayNTouch:Beijing Shiji Information Technology
New York
March 13, 2020
US President Trump:
On March 6, according to the National Defense Production Act of 1950, a presidential decree ordering China’s IT Beijing Beijing Shiji Information Technology to sell its US-based StayNTouch acquired in 2018 Was announced.
Shiji Group: Beijing Shiji Information Technology
“The Shiji Group’s takeover of StayNTouch in the United States poses a security threat to the United States,” the US government affirmed.
Shiji Group is offering services similar to StayNTouch for hotels, restaurants and retailers.
Shiji Group is a public company under Chinese law.
However, we are accepting investment from Alibaba, the largest in China.
US StayNTouch:
StayNTouch (Headquarters: Maryland) provides a mobile service for hotels, hotel and guest management.
Current Measures: Sale Order
In September 2018, Shiji Group completed the acquisition of StayNTouch.
However, Shiji Group has received the measure (sale order).
Within 120 days (Note), it is necessary to sell and dispose of all acquired shares and customer information.
Of course, the sale of shares to a third party requires the approval of the Foreign Investment Commission for the US (CFIUS).
Until the sale, access to customer information is completely prohibited.
Trump administration:
Qualcomm, a U.S. semiconductor giant,
Lattice Semiconductor,
This is the third case to prevent the acquisition of foreign companies.
The first time in the IT field (see article on December 2, 2019)
Beijing Shiji Information Technology:
A spokesman criticized the US government for taking this measure unfairly and not fully explaining the basis for its decision.
-JETRO
https://www.jetro.go.jp/biznews/2020/03/6cb725dbd58d1edb.html
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