US considers tighter rules on Chinese investments

%3CP%3E%3CFONT%20face%3DVerdana%3EChinese%20experts%20Thursday%20slammed%20a%20report%20that%20urges%20the%20US%20Congress%20to%20consider%20tighter%20rules%20on%20investment%20from%20China%27s%20State-owned%20companies%2C%20saying%20the%20report%20represents%20%22cold%20war%20mentality%22%20and%20will%20dampen%20economic%20cooperation%20between%20the%20countries.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20US-China%20Economic%20and%20Security%20Review%20Commission%2C%20a%20congressional%20advisory%20panel%2C%20said%20Wednesday%20in%20its%20annual%20report%20to%20the%20US%20Congress%20that%20investment%20from%20China%27s%20State-owned%20companies%20may%20pose%20both%20economic%20and%20security%20risks%20to%20the%20US.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22By%20some%20estimates%2C%20China%27s%20State%20sector%20now%20accounts%20for%20as%20much%20as%20half%20the%20Chinese%20economy.%20The%20Commission%20has%20recommended%20that%20Congress%20%u2026%20consider%20whether%20we%20need%20to%20better%20monitor%20the%20activities%20of%20Chinese%20State-owned%20enterprises%2C%20especially%20those%20that%20seek%20to%20invest%20in%20the%20US%2C%22%20said%20William%20Reinsch%2C%20vice%20chairman%20of%20the%20commission.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22The%20report%20may%20indicate%20an%20extension%20of%20the%20Huawei%20incident%20%u2014%20future%20Chinese%20investment%20in%20the%20US%20will%20face%20stricter%20review%20for%20sure%2C%20especially%20investment%20in%20the%20high-tech%20sector%2C%22%20Bai%20Ming%2C%20a%20researcher%20at%20the%20Chinese%20Academy%20of%20International%20Trade%20and%20Economic%20Cooperation%2C%20told%20the%20Global%20Times%20Thursday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EBai%20said%20it%20is%20possible%20that%20the%20US%20is%20trying%20to%20consolidate%20its%20leading%20position%20in%20the%20high-tech%20sector%20by%20warding%20off%20potential%20competition%20from%20China.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20also%20said%20that%20the%20commission%27s%20report%20indicates%20a%20%22cold%20war%20mentality%2C%22%20and%20the%20current%20negative%20sentiment%20in%20the%20US%20toward%20Chinese%20investment%20may%20further%20scare%20off%20Chinese%20companies%20eyeing%20opportunities%20in%20the%20US.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20He%20Weiwen%2C%20co-director%20of%20the%20China-US/EU%20Study%20Center%20at%20the%20China%20Association%20of%20International%20Trade%2C%20said%20that%20the%20report%20should%20be%20treated%20as%20an%20individual%20case%20and%20Chinese%20companies%20should%20also%20consider%20the%20bright%20side%20of%20cooperation%20with%20the%20US.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20report%20comes%20one%20month%20after%20the%20US%20blocked%20investments%20by%20Huawei%20and%20ZTE%2C%20warning%20that%20their%20equipment%20could%20be%20used%20for%20spying.%20And%20at%20present%20the%20acquisition%20of%20Canadian%20energy%20company%20Nexen%20by%20China%27s%20offshore%20oil%20producer%20CNOOC%20is%20pending%20US%20approval%2C%20which%20it%20needs%20because%20Nexen%20also%20operates%20in%20the%20US.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28Global%20Times%29%3CBR%3E%3C/FONT%3E%3C/P%3E