Business · World News Bureau
China calls on US to abandon plans to expand investment restrictions
Beijing has publicly urged Washington to refrain from broadening controls on American capital flows to Chinese entities, citing concerns that such measures would harm bilateral economic relations. The statement comes as the US administration considers stricter oversight of outbound investment in sensitive technology sectors.
LSN World News ·
China's foreign ministry issued a formal appeal to the United States on Tuesday, warning against what Beijing characterizes as protectionist expansion of investment screening mechanisms. The move represents a fresh escalation in tensions between the world's two largest economies over cross-border capital flows and technology access.
The timing of China's intervention suggests growing anxiety in Beijing over potential new restrictions that could affect Chinese companies' access to American markets and investment opportunities. US policymakers have been debating enhanced outbound investment controls, particularly in areas deemed critical to national security such as semiconductors, artificial intelligence, and quantum computing.
Chinese officials have argued that expanded investment curbs would disrupt normal economic cooperation and violate principles of free market competition. They contend that such restrictions mirror the kind of economic coercion that Beijing has repeatedly criticized in international forums.
The dispute underscores the deepening economic divide between Washington and Beijing, with both nations implementing measures they view as necessary for strategic security while the other perceives as economic warfare. Analysts expect continued friction over investment policy as the two countries navigate competing interests in emerging technologies and capital markets.