Tighter US investment rules to help China
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.
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