China Opposes Proposed US Expansion of Investment Curbs
Bastillepost · 2 SOURCES1 day ago2 MIN
Summary
China’s Ministry of Commerce said in Beijing that it is seriously concerned about and firmly opposed to a new proposed outbound investment restriction rule released by the US Treasury Department. The ministry said the draft would expand the scope of restrictions on investment in China in a discriminatory way, tighten curbs further, and interfere with normal economic and trade cooperation between companies in both countries.
Key Points
- The response came after the US Treasury Department recently issued a revised proposed rule on outbound investment restrictions, according to reports published on Saturday, October 24.
- A Ministry of Commerce spokesperson in Beijing said the proposed rule would discriminatorily broaden restrictions on US investment in China and increase their severity.
- The spokesperson described the move as a typical overextension of the national security concept, saying it goes against important consensus reached by the two countries’ leaders.
- Beijing said the proposed US measures would disrupt normal China-US business cooperation, undermine international economic and trade order, and reserve China’s right to take corresponding measures.
- The ministry also said China has a vast market with strong consumption and investment potential, and argued that restricting investment in China would also hurt US companies’ own interests
Why It Matters
For Hong Kong readers and businesses tracking China-US commercial ties, the dispute points to continued policy uncertainty around cross-border investment and corporate planning linked to the mainland market. Beijing’s warning that it may take corresponding measures suggests the issue could develop beyond rhetoric if Washington proceeds with the proposed rule.