US President Donald Trump has ordered the cancellation of a $2.9 million deal to purchase computer chips, arguing that it threatens US security interests if the current owner, HeFu Corp., retains control of the technology.
The executive order highlights a deal that garnered little attention when it was announced in May 2024 during the Biden administration. The deal involved Emcor Corp., an aerospace and defense company, selling its computer chips and chip manufacturing operations to HeFu for $2.92 million, a price that included $1 million in assumed liabilities.
Trump has now demanded that HeFu divest itself of the technology within 180 days, citing "credible evidence" that the current owner is a citizen of the People's Republic of China.
HeFu was founded by Dr. Jinzao Zhang and Harry Moore. A press release issued after the deal was finalized stated that the technology acquired from Emcor would be managed by the same staff at the company's headquarters in Alhambra, California.
Trump halts chip deal amid concerns over Chinese technology dominance
