The US Senate and House of Representatives have reached a deal on legislation that will intensify the scrutiny faced by incoming Chinese investment into the US, as well as other international deals related to sensitive American technology.
The agreed measure, which will be included in a military spending bill for review this month, will primarily expand the remit of CFIUS, or Committee on Foreign Investment in the US, allowing it to more effectively review deals between US and Chinese parties including cracking down on deals designed to go unnoticed by authorities such as those that use shell companies to subvert ownership laws.
US authorities will also gain additional powers to review overseas joint-venture agreements and transactions that involve technology that the US government deems pertinent to national security, according to the Wall Street Journal.
“America’s technology will now have strong protections commensurate with the challenges from China and other nations seeking to exploit our current laws,” said Representative of North Carolina Robert Pittenger, who co-proposed the bill late last year.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved