NewMore US lawmakers join call to look closely at Chinese takeovers

Two US representatives from California, including the head of the House intelligence committee, have joined the group of lawmakers backing an appeal to the government to increase scrutiny of Chinese takeovers of American companies.

Republicans Devin Nunes and Ken Calvert added their names to a bipartisan list of 16 other legislators who asked the US Government Accountability Office in a September 15 letter to review the matter, according to Clark Fonda, deputy chief of staff for Representative Robert Pittenger, a North Carolina Republican who drafted the letter. Nunes chairs the House Permanent Select Committee on Intelligence.

The lawmakers want the GAO to determine whether the Committee on Foreign Investment in the US has kept pace with the growing number of foreign acquisitions stateside.

The letter addressed the rise of investments from state-controlled enterprises from China and cited deals such as Dalian Wanda Group Co.’s acquisition of a controlling stake in AMC Entertainment Holdings Inc., and AMC’s pending purchase of Carmike Cinemas Inc., as cause for concern.

The lawmakers also cited foreign takeovers in other industries such as agriculture. The GAO said last week it would undertake the review of CFIUS early next year.

A spokesman for Nunes confirmed the lawmaker had joined the group. A spokesman for Calvert didn’t immediately return a request for comment.