Editor’s note. CPA supports this administration’s effort to restrict weaponized incoming investment from China and other strategic competitors.
New U.S. investment restrictions could restrict Chinese access to over 1,000 U.S. companies in technology and other sectors that the administration has deemed vital to U.S. national security, an administration official told POLITICO.
[DOUG PALMER and NANCY COOK | June 20, 2018 | Politico]
The administration is expected to release the new restrictions at the end of next week, consistent with the timetable President Donald Trump outlined in a statement in late May in which he announced plans to proceed with tariffs on Chinese goods because of concerns about intellectual property theft and forced technology transfers.
A private sector source told POLITICO they expect the administration to announce restrictions on Chinese investment in sectors that are integral to Beijing’s “Made in China 2025” plan to control future economic frontiers. That includes areas such as robotics, artificial intelligence, aerospace, biomedicine and energy-saving vehicles.
The private sector source did not think it was likely that the administration would issue a specific list of companies and say that China would be barred from investing in them, but that it could not be ruled out that Trump may have requested such a list.
In addition to identifying which sectors would face restrictions, the administration must answer a number of other questions as part of the forthcoming rules, such as what qualifies as a Chinese entity; how will third parties be treated; what equity thresholds will be set; and what penalties will be imposed for any violation.
The administration also will have to decide whether to leave in place any existing investments in newly restricted areas, or require the companies to take action to address U.S. concerns, the private sector source said.