The U.S. Congress has begun negotiations on a bill aimed at further restricting Chinese investments in certain sectors, especially technology, the Financial Times reported.
Authors of the bill said it would give the Committee on Foreign Investment in the U.S., or CFIUS, more powers to scrutinize Chinese investments. It would also give CFIUS new powers to review real estate transactions and the acquisition of minority stakes by Chinese and other foreign investors in start-ups, the FT said.
The Senate CFIUS bill by the Senate banking committee and a similar one in the House of Representatives have bipartisan support and the backing of the Trump administration, according to the report. The bills are expected to pass Congress in the summer.
Meanwhile, the U.S. Treasury has begun drafting restrictions on Chinese investment that President Donald Trump ordered in early 2018 after an investigation into China's intellectual property regime. Among those being considered are invoking the mechanism used to sanction rogue states such as Iran and North Korea and declaring a national economic emergency related to Chinese investment in strategic sectors, the report said.
Further, the Trump administration has insisted that China stop forcing foreign companies to transfer technology to gain entry to the Chinese market. Any deal with Beijing should also include measures to change its intellectual property laws.
