Broadcom-Qualcomm deal shouldn’t be allowed to go through

Hedge fund manager Kyle Bass said possible U.S. job losses from steel and trade tariffs are a small price to pay now for fighting back against bigger long-term trade issues like intellectual property theft by China.

Bass also told CNBC on Wednesday that Broadcom‘s proposed merger with Qualcomm should not be allowed to go through because of Qualcomm’s important position developing the technology that underpins the nation’s mobile communications network.

The U.S. government is also worried about the issue. The Treasury Department wrote a letter Monday to lawyers involved in the deal expressing concern about Chinese competitors in 5G network development, which raises national security concerns over the Broadcom-Qualcomm merger.

“We can’t possibly let the Broadcom Qualcomm merger go through,” Bass said on CNBC. “We can’t possibly allow that technology and that technological know how” fall into the hands of others.

On Wednesday, President Donald Trump said on Twitter that the U.S. was “acting swiftly on Intellectual Property theft. We cannot allow this to happen as it has for many years!”

Trump has proposed a 25 percent tariff on steel imports and 10 percent on aluminum, sparking fears of a trade war. Bass said, however, from a national security perspective “we think the Trump administration is focused in the right place.”

Bass is the founder and managing partner of Hayman Capital Management, where he gained a reputation for betting against subprime mortgages during the financial crisis.

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