China to Scrutinize US Foreign Investment Bill
Xu Wei
/SOURCE : Yicai
China to Scrutinize US Foreign Investment Bill

(Yicai Global) June 29 -- China intends to pay close attention to a bill designed to expand the jurisdiction of a US government body that examines proposed foreign investments in America for national security risks and assess the legislation's potential impact on Chinese companies, its commerce ministry said.

China believes in continuing to promote open investment and opposes tightened foreign investment conditions under the pretense of national security, ministry spokesman Gao Feng said at a press conference.

US President Donald Trump said two days ago that he supports the bipartisan legislation, called the Foreign Investment Risk Review Modernization Act, which would safeguard key US technology from overseas buyers. The US House of Representatives passed a version of the bill on June 27.

FIRRMA would grant the Committee on Foreign Investment in the United States extended powers to look into, and possibly prevent, foreign deals.

International investors would "vote with their feet" over US investment changes, Gao said.

Chinese and American businesses have been actively performing legal and compliant technical cooperation, which has accelerated trade growth between them, promoted technical progress, and benefited both sides, Gao said. The US move to restrict exports is counterproductive, he added.

Editor: Emmi Laine

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Keywords: US , MOFCOM , CFIUS