Tighter US in­vest­ment rules to help China

Global Times US Edition - - BIZOVE - By Chen Qingqing and Chu Daye

Tight­ened rules on in­vest­ment in the US in so-called sen­si­tive sec­tors, po­ten­tially tar­get­ing Chi­nese merger and ac­qui­si­tion deals (M&A), might have a sil­ver lin­ing in terms of boost­ing China’s do­mes­tic ca­pac­ity in such ar­eas, ex­perts said on Thurs­day.

The US gov­ern­ment will tighten rules on for­eign in­vest­ment in crit­i­cal in­dus­tries un­der an in­terim reg­u­la­tion in Novem­ber, the Trea­sury Depart­ment said on Wed­nes­day. As a re­sult, the Com­mit­tee on For­eign In­vest­ment in the United States (CFIUS) will get en­hanced power in its re­view of 27 sen­si­tive sec­tors, po­ten­tially curb­ing Chi­nese in­vest­ment.

Ac­cord­ing to Reuters, the 27 in­dus­tries cover telecom­mu­ni­ca­tions and semi­con­duc­tors as well as air­craft man­u­fac­tur­ing (in­clud­ing en­gines and en­gine parts), alu­minum pro­duc­tion, com­puter stor­age devices, guided mis­siles and other mil­i­tary equip­ment.

In­vest­ments in these sec­tors must be re­ported to the CFIUS if the for­eign in­vestor’s role would al­low ac- cess to n af­ford po mem­ber de­ci­sions

CFIUS nese M& sen­si­tive end semi

Tighte in­vestme tive ar­eas of US com er­ate the chips in C tative sur Times on

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