The Trump administration proposed new rules on Tuesday that would allow the United States to exert greater control over foreign investment by broadening the government’s authority to block technology and real estate transactions, said the New York Times.
The regulations, released by the Treasury Department, would add to a 2018 law, the Foreign Investment Risk Review Modernization Act, that expanded the powers of a government panel to block transactions on national security grounds.
The rules, which would not take effect until next year, would give the Committee on Foreign Investment (CFIUS) in the United States, greater power to stop foreign investment in areas the United States deems protected. While the rules would apply to any foreign investment, the effort is primarily aimed at preventing China from gaining access to sensitive American technology and other valuable assets.
The move is the latest attempt by the administration to thwart China’s technological and economic ambitions and curb Chinese investment in the United States, reported the NYT. The administration has moved to blacklist some Chinese firms, including the telecom giant Huawei, and is considering new controls that would restrict the kinds of technology that can be exported to China. Chinese investment in the United States has plummeted in the last two years as relations between the two countries have soured amid an escalating trade war.