US urged to block China’s state companies from buying high security risk American assets
A US congressional advisory panel wants Congress to update legislation on national security reviews of foreign investment to address ‘security risks’
The US should block China’s state-owned enterprises and sovereign wealth funds from acquiring US assets, particularly the country’s “critical technologies or infrastructure” exposed to potential national security risks, a US congressional advisory committee said.
The US-China Economic and Security Review Commission (USCC) recommended in its annual report that Congress consider updating legislation pertaining to national security reviews of foreign investment to address “current and evolving security risks”.
When a Chinese state-owned enterprise (SOE) gains control of US companies in sensitive industries, the report said, there is “an inherently high risk” it “will use the technology, intelligence and market power it gains in service of the Chinese state to the detriment of US national security”.
Therefore, the commission asserted that Congress should prohibit the acquisition of US assets by Chinese state-owned or state-controlled entities, including sovereign wealth funds.
It also said US government agencies, including the departments of homeland security, commerce and defence need to prepare and regularly update a list of “critical technologies or infrastructure” that would be unavailable to Chinese entities for acquisition or investment.
