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China’s Policies, That Require Foreign Companies To Have Chinese Partners, May Be Addressed By U.S. Legislation.

ArmchairTechInvestorTradeChina, November 6, 2017, by Brad Peery,
Blog site: WWW.ArmchairTechInvestor.com
Email: ArmchairTechInvestor@gmail.com

*In early November, 2017, a bill should be introduced in the U.S. Congress that will toughen foreign investment rules. The problems that could be addressed include a recent Chinese company attempt to acquire a U.S. company with a significant amount of semiconductor technology. This could help China develop its’ semiconductor industry to compete in the commercial Internet business, and develop sophisticated military systems. The real risk is the transferring of military capabilities to a country that has professed its intention to become the dominant country worldwide in trade and military capabilities. They are very purposeful and diligent in their pursuit of those ambitions.

Identical bills concerning the foreign investment issues will be introduced in both the Senate and the House. The bills will give additional guidance and requirements to CFIUS, an interagency panel led by the Treasury Department that reviews proposed transactions that raise national security concerns.

Rep. Denny Heck, a Democrat from Washington, was concerned about China, at least partly because of how China’s trade policies result in stolen U.S. intellectual property. One of his statements was “China’s actions are clear – they are cheating the system. They are evading the rules meant to prevent them from accessing technology critical to our national security and we need to do something to stop them sooner rather than later,” he said. “With these changes, we hope to modernize and update the law in order to meet today’s threats from around the globe.”

CFIUS has become more conservative since President Donald Trump was inaugurated. Since then, they have been more diligent in rejecting a broader range of deals from China.

The bills would also expand CFIUS’ power to look at smaller investments and joint ventures, according to sources who have read drafts of the bills.
*Bipartisan bills expected to toughen U.S. foreign investment rules, Reuters, Diane Bartz, November 3, 2017

ArmchairPolitician.US Opinion
China has policies that require joint ventures with Chinese companies to do business in China. This results in Chinese joint venture companies, many of which may be owned at lease partly by the Chinese government, being in a position to steal the technology of their joint venture foreign partners.

China’s expressed ambitions are to be a world power, and use trade, and military predominance to achieve their goals.

China is not a monolithic country. There are a great diversity of interests, from the rural population to the urban dwellers, to the local governments that have their own significant power. China has so far used its dominance politically to make China a worldwide threat to the U.S. The U.S. Congress acts slowly, but hopefully they will adopt the pending legislation that could address at least a part of the threat, the transfer of U.S. technology to China.

See:
ArmchairPolitiicianChina, October 2, 2017, by Brad Peery, WWW.ArmchairPolitician.US, ArmchairPolitician.US@gmail.com
China’s Unfair Trade Practices Are Evident In Their Electric Car Regulations: What Can The U.S. Do?

See Also:
ArmchairPolitician.China, August 12, 2017, By Brad Peery, WWW.ArmchairPolitician.US, ArmchairPolitician.US@gmail.com
The U.S. Faces Many Trade Barriers: How Can Fair Trade Be Achieved?

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