Upset China to ‘assess the contents’ of US defense bill

Upset China to ‘assess the contents’ of US defense bill
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Chinese officials on Tuesday decried new measures targeting China included in the U.S. defense bill signed by President TrumpDonald John Trump Trump responds to calls to tear down monuments with creation of 'National Garden' of statues Trump: Children are taught in school to 'hate their own country' Trump accuses those tearing down statues of wanting to 'overthrow the American Revolution' MORE on Monday, saying it would closely examine the legislation.

Reuters reported that China condemned the National Defense Authorization Act (NDAA) for including a measure to strengthen the Committee on Foreign Investment in the United States (CFIUS).

The inter-agency committee reviews business deals that could result in a foreign person or company winning control of a U.S. business, to determine if there is a national security risk to the United States.

The defense bill provides more funding for CFIUS, and expands the number of minority investments to be reviewed, and makes it easier to do reviews of less controversial deals quickly.

 

Reuters reported that China’s Commerce Ministry said in a statement that it would “comprehensively assess the contents” of the NDAA, including the CFIUS measure.

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“The U.S. side should objectively and fairly treat Chinese investors, and avoid CFIUS becoming an obstacle to investment cooperation between Chinese and U.S. firms,” the ministry’s statement read.

The legislation also bans the U.S. government from working with Chinese telecommunication firms ZTE and Huawei, or any other companies that work with them.

The new U.S. measures on China come as the countries engage in an escalating trade war.

The Trump administration said earlier this month that it would slap the country with an additional $16 billion of tariffs, and China announced retaliatory tariffs of the same value the following day.