The Trump administration is forcing this health start-up that took Chinese money into a fire sale

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PatientsLikeMe sold a majority stake to Chinese company iCarbonX in 2017. The deal is backfiring now that Trump is clamping down on China, as CFIUS forces the Chinese firm to divest its majority stake.

As the Trump administration cracks down on Chinese investment in corporate America, one health tech start-up is facing an abnormal situation: PatientsLikeMe is being forced to find a buyer after the U.S. government has ordered its majority owner, a Chinese firm, to divest its stake.

The move could have dire implications for the start-up community, as Chinese investors are scared away or forbidden from participating in deals that can help emerging businesses. President Trump's most notable move came last March, when CFIUS forbade Singapore-based Broadcom from pursuing its $121 billion proposed acquisition of Qualcomm because of security concerns related to Qualcomm's work on 5G.

PatientsLikeMe potentially presents similar unease, because the company collects data on users who set up profiles so they can ask and answer questions about their conditions.

 

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So screwed up. The POTUS thinks he controls the free market. That’s not capitalism. That’s not America. That’s corrupt. That’s borderline communism

The orange man administration is forcing this health start-up that took Chinese candy into a fire sale

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