Recommendations for strict rules on Chinese investment in U.S. - SupChina

Recommendations for strict rules on Chinese investment in U.S.

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Yesterday we noted one of the recommendations in the annual report of the U.S.-China Economic and Security Review Commission, an advisory body to the U.S. Congress: that journalists at Chinese state-owned media organizations register as foreign agents. After reading the whole report — nearly 600 pages of it — I’d like to highlight a few of the other recommendations that indicate a real hardening of attitudes to China among America’s political class:

  • Prohibiting the acquisition of U.S. assets “by Chinese state-owned or state-controlled entities,” and ensuring a strict review process for all significant Chinese investments in the U.S., including licensing agreements and any deals that enable Chinese entities to “determine the disposition of any asset.”
  • Using a “net economic benefit test” when assessing Chinese acquisitions in the U.S.
  • Requiring that acquisition of media properties by a Chinese entity are assessed “in terms of the acquiring entity’s history of adhering to Chinese Communist Party propaganda objectives.”
  • Inviting Taiwan “to participate, at least as an observer, in U.S.-led bilateral and multilateral military and security-related exercises, including the Rim of the Pacific (RIMPAC) maritime exercise.”
  • Imposing reciprocity: Legislation to allow market access to Chinese investors in the U.S. “on a reciprocal, sector-by-sector basis to provide a level playing field for U.S. investors in China.”

The addictive spectacle of November 11th

Here’s a new China-related newsletter: Magpie Digest: “a weekly exploration of contemporary China, one trending topic at a time.” The first issue looks at online conversations and memes about November 11 or Singles Day: the annual festival of online consumption that China’s ecommerce firms have manipulated Chinese internet users into celebrating.

Jeremy Goldkorn

Jeremy Goldkorn worked in China for 20 years as an editor and entrepreneur. He is editor-in-chief of SupChina, and co-founder of the Sinica Podcast.