By Arsheeya Bajwa

(Reuters) -Intel CEO Lip-Bu Tan is already facing an uphill battle in turning around the ailing chipmaker. Now, U.S. President Donald Trump’s demand that Tan resign over his ties to Chinese firms will only distract him from that task, two investors and a former senior employee said.

Trump said on Thursday that Tan was “highly conflicted” due to his Chinese connections. Reuters reported exclusively in April that Tan had invested in hundreds of Chinese firms, some of which were linked to the Chinese military.

Tan may now have to mount an effort to reassure Trump that he remains the right person to revive the storied American chipmaker, pulling his focus away from the cost cuts he’s trying to implement.

“It is distracting,” said Ryuta Makino, analyst at Intel investor Ga

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