Christian County's Only Daily | Subscriptions | Username & Password Reminder | Change Password
Breeze Courier | Taylorville, IL
weather sponsored by
A Classic Bouquet




Advanced Search
search sponsored by


LOGIN | SUBSCRIBE




KMRM

home : news : odds and ends free April 25, 2015

   
11/14/2012 9:50:00 AM
Panel urges more oversight of China investment

WASHINGTON (AP) — A congressional advisory panel on Wednesday urged tighter screening of investment by Chinese state-owned companies in the U.S., saying they present unfair competition to American firms.

That’s the primary recommendation of an annual report by the U.S.-China Economic and Security Review Commission. The panel advises Congress on the national security implications of the relationship between the world’s two biggest economies.

It is proposing that Congress broaden the mandate of a committee chaired by Treasury Secretary Timothy Geithner that screens foreign investment proposals.

China already accuses the U.S. of discriminating against its companies, although analysts say American firms face bigger obstructions investing in China. Chinese investment in the U.S. is still comparatively low but has risen sharply in recent years and is set to hit record levels in 2012.

“Growing Chinese investment may offer an important new source for U.S. job creation and economic growth, but it is too early to know whether the benefits will outweigh whatever longer-term economic costs Chinese state-owned and state-directed investments may bring,” the commission says.

Its report says that despite three decades of economic reform in China, state-controlled enterprises still account for as much as half of the Chinese economy, and their role has been enhanced by a $585 billion government stimulus during the 2008 slowdown.

The enterprises benefit from preferential financing from China’s state-dominated banks, cheap land, fuel and electricity, regulatory exemptions and tax preferences, the commission says.

The commission proposes Congress examine Chinese investment and assess whether to widen the mandate of the Committee on Foreign Investment in the United States so it would be required to screen transactions by Chinese state companies that give them a majority stake in American companies.

Currently the committee screens investment proposals only on national security grounds.

The commission also proposes prohibiting investment in a U.S. industry by a foreign company whose government prohibits foreign investment in that same industry. That’s a response to what it describes as the exclusion of American firms from investing in sectors dominated by state-controlled firms in China, such as telecommunications services and oil and natural gas.

The wide-ranging report also assesses China’s military and cyber capabilities.

It recommends Congress conduct an in-depth assessment into Chinese cyber espionage practices. It says state-sponsored actors continue to exploit U.S. government, military, industrial and nongovernmental computer systems and that “Chinese exploitation capabilities are improving significantly.”

China is also advancing its military modernization efforts, with development of advanced fighter jets, and space and ballistic missile programs, the report says, a strategy it views as aimed at restricting the ability of U.S. forces to operate in the vicinity of China, particularly in the event of a conflict over the self-governing island of Taiwan.

The report also notes significant improvements in China’s nuclear forces and says within two years it will perhaps have attained three ways of delivering such weapons — by bombs, land-based missiles and submarine-launched ballistic missiles. It voices concerns over “occasional disconnects” between China’s civil and military leadership, introducing uncertainty about China’s command authority of its nuclear weapons.

In Beijing, the Chinese Foreign Ministry accused the commission of “indulging in cold war mentality.”

“We hope they will stop their prejudice, respect facts and stop interfering in China’s internal affairs and hurting China-U.S. relations,” Foreign Ministry spokesman Hong Lei said Wednesday.

On the subject of cyber security, Hong said, “China is firmly opposed to cyber attacks and has enacted laws on this issue.”

“China believes the issue should be dealt with by cooperation on an equal footing. In fact, China and the U.S. have already started cooperation in cyber security,” Hong said, adding that the report “does not help” that cooperation.


Anderson Jewelers




Article Comment Submission Form
Please feel free to submit your comments.

If you are looking for the SPEAK OUT submission form, you can find it by clicking here: Speak Out Form


Article comments are not posted immediately to the Web site. Each submission must be approved by the Web site editor, who may edit content for appropriateness. There may be a delay of 24-48 hours for any submission while the web site editor reviews and approves it.

NOTE: All information on this form is required. Your telephone number and email address will not be displayed or shared.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   








Trinity Dodge Fixed
A Classic Bouquet

NewsWebPagesOpinionPeopleObituariesAg & BusinessSports
Christian County's Only Daily | Subscriptions | Username & Password Reminder | Change Password | Life

Breeze-Courier & Printing | 212 S Main St. Taylorville, IL 62568 | (217) 824-2233 |
website@breezecourier.com

© Copyright 2014 Breeze-Courier & Printing. All Rights Reserved.
Original content may not be reprinted or distributed without the written permission of Breeze-Courier & Printing.

Software © 1998-2015 1up! Software, All Rights Reserved