China Responds to US Investment Restrictions: Grave Concerns and Firm Opposition

China expressed grave concerns and firm opposition to a US Department of the Treasury proposal that expands and tightens restrictions on outbound investment in China, according to a statement by a spokesperson for the Chinese Ministry of Commerce in response to a media inquiry.

The spokesperson said that the proposed amendments contradict the important understandings reached by the heads of state of the two countries, disrupt normal economic and trade cooperation between Chinese and American companies, and undermine the international economic and trade order.

He added that China will closely monitor developments and reserves the right to take corresponding measures, noting that restrictions on investment in China not only harm bilateral cooperation but also damage the interests of American companies.

The Ministry of Commerce called on the US side to respect market economy principles, stop overstretching the concept of national security, cease politicizing and weaponizing economic and trade issues, and create a favorable environment for bilateral cooperation.

What do these terms mean?

Outbound Investment Restrictions: Rules that prevent or restrict investments by domestic companies and funds in specific sectors or countries for security or political reasons.

National Security: A concept relied upon by countries to justify exceptional restrictions on trade and investment, which expands or narrows depending on the regulatory authority's interpretation.

Comment Period: A timeframe during which a regulatory authority opens a draft of a new rule for public feedback before its final approval.