China asks US to drop plan to widen limits on American investment in Chinese firms
Beijing's commerce ministry said the proposed rule on sensitive technologies would disrupt trade ties and reserved the right to take countermeasures.
China has asked the United States to drop a plan to widen limits on American investment in Chinese firms, according to CNA.
Beijing's commerce ministry made the call on Saturday (Oct 24). It said a proposed rule covering sensitive technologies would disrupt trade ties.
What Washington has proposed
On Thursday, the US Treasury Department unveiled draft changes to the security programme that governs its outbound investment. They would add biotechnology to the list of restricted sectors and widen the coverage of high-performance computing and hypersonic systems.
Under the existing programme, certain US investments tied to China in semiconductors, quantum technologies and artificial intelligence were already subject to restrictions.
The Treasury has said the measures do not apply only to China. It says they are meant to stop US capital from backing the development of dual-use strategic technologies by foreign adversaries, which could threaten US national security.
Beijing's response
In a statement, the ministry said the proposal "discriminatorily" widened investment restrictions linked to China and intensified curbs. It said it firmly opposed the plan and reserved the right to take countermeasures, which it did not specify.
Beijing further contended that the proposal would harm economic ties between the two countries and contradicted the consensus of their leaders, who have held two meetings over the last six months.
