Washington – The Trump administration has barred the sale of a US technology firm to a Chinese-backed company, citing national security risks.

Since November, Chinese-backed Canyon Bridge Capital Partners has been seeking approval for a $1.3bn (£984m) deal to buy Lattice Semiconductor.

The firms said they were "disappointed” by the decision.

The order comes as the US has been toughening its stance on business dealings with China.

The US last month launched a formal review of China’s intellectual property practices, which it says may force US companies to surrender valuable information.

US politicians and military leaders have also urged the administration to take a closer look at Chinese investments in the US, particularly in the technology industry.

‘Excellent deal’

In its announcement, the Trump administration said it was concerned about the "potential transfer” of intellectual property from Lattice, which makes advanced computer chips.

It also cited the use of Lattice products by the US government.

Agencies