China Opposes US Tightening Foreign Investment And Intends To Monitor The Process
The United States and China are on the cusp of a tit-for-tat trade war. Initial threats of tariffs on US$50 billion of products from China have escalated to talk of action against an additional US$400 billion in imports. But even while all eyes are on the goods trade tussles, Washington is opening another front in this battle: on investment.
US President stated yesterday he will use a strengthened national security review process to thwart Chinese acquisitions of sensitive American technologies, a softer approach than imposing China-specific investment restrictions.The US Treasury Department has recommended that Trump use the Committee on Foreign Investment in the United States (CFIUS), whose authority would be enhanced by new legislation in Congress, to control investment deals.
As a response, China's Commerce Ministry said it would carefully monitor US policies on inbound investments, stressing that the country opposes using national security as grounds to restrict foreign investments.
"China will closely monitor the legislation process and evaluate its potential impact on Chinese companies," Gao Feng (Chinese Commerce Ministry spokesman) stated. "China does not agree with tightening foreign investment conditions using national security as reasons," he added.