Security Reviews Should Not Be Used as Tool for Protectionism, China’s Ministry of Commerce Says

Security Reviews Should Not Be Used as Tool for Protectionism, China’s Ministry of Commerce Says

Tang Shihua

Date: Thu, 09/14/2017 - 19:11 / source:Yicai
Security Reviews Should Not Be Used as Tool for Protectionism, China’s Ministry of Commerce Says
Security Reviews Should Not Be Used as Tool for Protectionism, China’s Ministry of Commerce Says

(Yicai Global) Sept. 14 -- Countries have the legitimate right to conduct security reviews of foreign investments in sensitive sectors, but should not use them as a tool for protectionism, Chinese Ministry of Commerce spokesman Gao Feng said today, commenting on US President Donald Trump’s blocking of a Chinese-backed investment fund from acquiring an American semiconductor maker.

Gao made the remarks at a press briefing in response to a reporter’s query.

Chinese companies’ purchases of foreign firms outside China are market decisions they make independently, Gao said. China hopes that relevant countries can look at overseas acquisitions by Chinese companies objectively and fairly, offer equal treatment to such normal commercial behaviors and create a reasonable and transparent business environment for them to avoid affecting investor confidence, said Gao.

Chinese direct investment in the US has totaled more than USD100 billion since 2000, creating more than 140,000 jobs, Gao said, citing US-based Rhodium Group LLC data.

Trump barred Chinese government-backed China Venture Capital Fund Corp. from buying Lattice Semiconductor Corp. on the grounds that the deal may pose a national security threat to the United States, the White House said.

Lattice makes programmable chips used in communications and computing. Its products have both industrial and military applications. It reportedly generates more than 70 percent of its revenue in Asia.

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Keywords: FDI, Assets Acquisition, MOC, US