Key Takeaways
- Chinese commerce ministry calls for US to stop expanding restrictions on investments in China.
- US Treasury proposes new rules targeting biotechnology and high-performance computing.
- Beijing warns of unspecified countermeasures if US proceeds with the proposal.
The Chinese commerce ministry has urged the United States to halt its proposed expansion of outbound investment curbs, citing concerns that the measures would disrupt trade ties and damage bilateral economic relations.
In a statement, the ministry expressed firm opposition to the US proposal, which was issued by the US Treasury Department on Thursday. The proposal aims to update the US outbound-investment security programme, adding biotechnology to restricted sectors and expanding coverage to include high-performance computing and hypersonic systems.
Beijing emphasized that the proposed rule discriminately widened China-related investment restrictions and intensified curbs, stating that it would take unspecified countermeasures if the US proceeds with the proposal.
The Chinese ministry also highlighted that the US proposal contradicts the consensus reached by the presidents of both countries, who have met twice in the past six months. The US Treasury has stated that the measures, which are not limited to China, are intended to prevent US capital from supporting foreign adversaries' development of dual-use strategic technologies that could threaten US national security.
The Chinese ministry pointed out that the US programme had already restricted certain US investments involving China in semiconductors, quantum technologies, and artificial intelligence. It warned that the proposed expansion of these restrictions could have significant implications for ongoing trade and economic relations between the two nations.
The US Treasury Department has defended the proposed measures, stating that they are necessary to protect US national security by preventing US capital from supporting foreign adversaries' development of dual-use strategic technologies.
Both parties have engaged in ongoing dialogue and cooperation, but the Chinese ministry's statement underscores the potential for heightened tensions if the US proceeds with the proposed expansion of investment curbs.
The Chinese ministry's stance reflects a broader concern among Chinese officials about the impact of US policies on bilateral economic relations and the potential for trade disruptions.
