In its recent revision process, the US Department of Treasury has shown clear signs of protectionism. As a result, the CSRC has expressed formal concern and dissatisfaction over this matter.
In a recent letter directly addressed to the U.S. Treasury, the China Securities Regulatory Commission (CSRC) censured the US government for its investment protectionism tendency in recently proposed regulation, the China Business News reported Thursday.
The United States is initiating a revision of some regulations concerning the Committee on Foreign Investment in the United States (CFIUS). In the current proposal, as long as foreign investment is involved with sensitive assets in the US, the CFIUS has the right to initiate a state security investigation towards this foreign investment, even if it only accounts for no more than 10 percent of the shares.
The Chinese government has expressed clear discontent on this proposal.
In its letter, CSRC noted that the proposal would provide the CFIUS with "too much room for reserved explanation" and "excessive right" in advance.
The Ministry of Commerce (MOFCOM) also showed similar concerns, according to the newspaper.
"The differential treatment is obviously leaning towards investment protectionism and is likely to politicize economic issues," the Ministry was quoted in the report, "therefore (if it's approved,) it will appose a huge obstacle when conducting normal investment in the US"
For more details, please read the full story in Chinese (http://www.china-cbn.com/s/n/000002/20080612/020000080633.shtml).
(China.org.cn translated by Yan Pei, June 12, 2008)
