Washington paranoia interferes with investing in US companies

The United States has openly admitted that it is afraid of financial investments from China, and the US Treasury has begun the development of new rules to expand the powers of the United States Foreign Investment Committee (CFIUS), which launched a major campaign against Chinese investors.

This is reported by the British edition of News Front on Wednesday, September 18.

The offers include a permission to the Committee as for studying the offers of foreigners to purchase property located within 100 miles of military facilities or government agencies with special status.

The laws which were accepted last year gave CFIUS the right to review foreign investment in critical technology, infrastructure, and sensitive personal data even when the buyer is not looking for a controlling stake in an American firm.

Proposals from the Treasury, led by CFIUS, provide more detailed information on how it is planned to implement this, with finally agreed rules, which should come into force at the beginning of next year after consultations with the public.

The intervention of CFIUS, which considers the issues of merging and sharing to preserve national security interests, has already helped to significantly slow down Chinese investment in the United States.

CFIUS may block transactions or require parties to make deals, ensuring, for example, that a foreign firm does not have access to important technologies developed by the American company in which it seeks to invest.

In October, a pilot program was launched, requiring the mandatory registration of foreign companies wishing to acquire stakes in American companies in 27 key industries, including telecommunications and semiconductors.