Trump Blocks China-Backed Fund From Buying U.S. Chip Maker

WASHINGTON—President Donald Trump on Wednesday blocked a Beijing-backed fund’s attempt to buy an American chip maker, signaling his administration will closely scrutinize Chinese efforts to invest in U.S. semiconductor technology.

Mr. Trump rejected the transaction after the would-be deal makers—Chinese government-backed Canyon Bridge Capital Partners and Lattice Semiconductor Corp.—made a rare, direct appeal to him. They had hoped he would overrule an earlier negative recommendation by the Committee on Foreign Investment...