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Global Times: USCC Recommended a Ban on Chinese Acquisitions of U.S. Companies

Global Times recently reported that the Congressional U.S.-China Economic and Security Review Commission (USCC) recently published its annual report in which it recommended that the Committee on Foreign Investment in the United States (CFIUS) establish a ban on Chinese acquisitions of U.S. companies. The USCC report to Congress proposed that the authorizations to CFIUS be adjusted so that Chinese buyers cannot acquire controlling stakes in U.S companies. According to Thomson Reuters, this year the United States has been China’s largest acquisition destination. Chinese buyers invested US$64.5 billion in the U.S. this year, which set a new record. USCC did not mention CFIUS in last year’s report. CFIUS did increase its action level against Chinese investments this year. The USCC report was submitted right after Donald Trump won the election. His transition team is in the middle of forming U.S. trade policies. Trump has criticized China’s trade policies. Several times during his campaign, he has suggested a 45 percent tariff [on Chinese imports].

Source: Global Times, November 17, 2016