The U.S. Treasury is looking for ways to restrict some Chinese investments in the United States with an emergency powers law, according to a report this week by Reuters.
The report said the agency is also looking at changing requirements for government review of some corporate acquisitions.o
The move is part of the Trump administration’s “Section 301” intellectual property agenda and include potential investment restrictions specific to China, the news agency reported, citing remarks given by Assistant Secretary for International Markets and Investment Heath Tarbert told an Institute of International Finance Forum.
A report released earlier this year by the Pentagon’s Defense Innovation Unit Experimental said that Chinese investment in American startups has grown and that Chinese firms are now investing in more than 10 percent of American venture-backed tech startups. That could be a problem, the Pentagon argued, because as part of their investment in American tech, Chinese firms are appropriating the technology – keeping pace with American technological advancement by, essentially, buying into it. The American military establishment worries that could hurt United States military interests because American consumer tech strongly overlaps American military tech.
Speaking in Beijing on Friday, Foreign Ministry spokeswoman Hua Chunying said the mooted move was another example of U.S. “hegemonic attitudes,” according to the Reuters report.
“On the one hand the U.S. wants us to open our markets further yet on the other hand it sets restrictions for Chinese trade and investment in the name of national security,” Hua said.
The defense agency has called on Congress to pass legislation to upgrade security reviews by the Committee on Foreign Investment in the United States, or CFIUS.