China will create a new body to review all significant foreign investments made in companies based in the People’s Republic.
“Foreign investments in military, agriculture, energy and resources, key infrastructure, transport systems, key technology sectors and “important equipment manufacturers” may be subject to reviews, according to a statement published on the central government Internet portal, www.gov.cn,” Reuters reports.
It is probably not a coincidence that the announcement comes just a few days after news leaked that the US will probably block an acquisition by China’s Huawei of part of American company 3Leaf. Members of Congress have raised concerns that Huawei has a history of stealing intellectual property.
“Allowing Huawei and, by extension, communist China to have access to this core technology could pose a serious risk as U.S. computer networks come to further rely on and integrate this technology. Huawei, and its Chinese government sponsors, must understand that it will not be permitted to attempt to exploit loopholes it perceives in our laws,” U.S. Senators Jim Webb and Jon Kyl recently said in a letter to the Administration.
The battle over trade, currency, and M&A between China and the US has begun to shift again–this time to an era in which each nation will begin to block the strategic deals of each other’s large companies
Douglas A. McIntyre
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