Chinese state-owned companies should be barred from acquiring companies in the US, a congressional panel warned on Wednesday in the latest sign of the political sensitivity of increasing Chinese investment.
The US-China Economic and Security Review Commission said that Chinese state-owned enterprises could use technologies they acquired to benefit Chinese national interests “to the detriment of US national security”.
The annual report by the commission to the US Congress carries no legal power and is only a recommendation. However, it underscores a growing tide of political opinion that is wary about incoming Chinese investment.
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