China investment curbs gain momentum in US lawmaker talks - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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A bipartisan group of lawmakers said on Monday they have agreed on a proposal that would give the U.S. government sweeping new powers to block billions in US investment into China, although the measure is part of a broader bill with an uncertain future.

Chinese and US flags flutter outside the building of an American company in Beijing, China January 21, 2021.Chinese and US flags flutter outside the building of an American company in Beijing, China January 21, 2021.

Democratic Senator Mark Warner told Reuters on Monday the “the clock is ticking” on the broader chips bill and said there were “a lot of conversations” about pivoting to a bill that would only focus on subsidies for plants to make chips, potentially dropping trade provisions and other measures aimed helping the U.S. compete with China in science, business and technology.

The draft legislation, which would capture fewer investments than the original version, stirred opposition from critics who said it would harm American competitiveness. The US-China Business Council said about the new draft, “If such government controls were implemented on a unilateral basis, it would only hurt the flexibility and resilience of American companies.”

The legislation is intended to give the US government greater visibility into U.S. investments. It will be mandatory to notify the government of investments that may fall under the new regulations, and the U.S. can use existing authorities to stop investments, or mitigate risk. If no action is taken, the investment can move forward.

 

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