U.S. Treasury to restrict Chinese investments: senior Treasury official

Vastavam web: The U.S. Treasury is considering ways to restrict sensitive Chinese investments in the United States by invoking an emergency powers law and bringing forward some security review reforms for corporate acquisitions, a senior Treasury official said on Thursday.Assistant Secretary for International Markets and Investment Heath Tarbert told an Institute of International Finance Forum that the efforts were being examined as part of the Trump administration’s “Section 301” intellectual property remedies, which include China-specific investment restrictions.

Asked about reports the Treasury may bring forward parts of a bill to modernize security reviews by the Committee on Foreign Investment in the United States and use the International Emergency Economic Powers Act, Tarbert said a special Treasury office devoted to the China restrictions was considering such avenues.The Treasury investment restrictions are aimed partly at pressuring China to lift requirements for foreign companies to form joint ventures with local firms that lead to technology transfers, a policy the administration deems unfair when the United States has no such restrictions on Chinese firms.

In a major policy shift, China said on Tuesday it would scrap a 50 percent limit on foreign ownership of autos by 2022.Tarbert said the Treasury was committed to working with Congress to pass the CFIUS legislation, known as the Foreign Investment Risk Review Modernization Act, or FIRRMA.