American lawmakers seek tighter scrutiny of Chinese investment

Washington: American lawmakers are mounting efforts to tighten the government's scrutiny on surging Chinese investment in the US which they feel could be a threat to the nation's security.

The efforts, which involve lawmakers from both parties, are yet to coalesce around any one plan, but the common goal is to see the Committee on Foreign Investment in the US (CFIUS) put to more aggressive use, according to The Wall Street Journal.

Senate Majority Whip John Cornyn and Senate Minority Leader Chuck Schumer are writing legislation to strengthen the authority of CFIUS, a secretive, multi-agency body led by the Treasury that can recommend the President block foreign deals on national security grounds, the report said.

"Politicians on both sides of the aisle say some of the purchases threaten national security. Some also argue that the Chinese shouldn't be able to invest here freely while US companies face restrictions in China," the daily reported.

According to New York-based advisory firm Rhodium Group, the Chinese investment in the US tripled last year to a record USD 45.6 billion.

Two other Congressmen -- Robert Pittenger and Chris Smith -- also asked the US to ignore well-coordinated Chinese investments that target critical and financial infrastructure.

"China is seeking to engage in transactions that threaten the integrity of American markets, yet they close their own markets and systemically forbid foreign access," alleged Pittenger and Chris Smith wrote in an op-ed in The wall Street Journal.

Pittenger is vice chairman of the House Subcommittee on Terrorism and Illicit Finance.

Smith is a senior member of the House Foreign Affairs Committee and chairman of the Congressional-Executive Commission on China.

"While we should not shut off all Chinese investment in the US, our government must consider each transaction with a clear understanding of the associated risks," they wrote.

"We must work in a unified manner to protect our country's economic principles, and we cannot afford to ignore well-coordinated Chinese investments that target our critical and financial infrastructure, and that may undermine core strategic interests and values," the two lawmakers said.

They alleged that Americas economic strength is at risk from strategic, well-coordinated and state-sponsored Chinese investments in American financial institutions.

"Chinese spending in the financial sector has risen dramatically and is often driven by the priorities and objectives of the Chinese government," they said demanding a strict examination of Chinese government efforts to acquire US financial entities.

Meanwhile, a top American Senator condemned China for completing new structures on artificial islands in the South China Sea for the purpose of holding surface-to-air missiles.

"Despite claims to the contrary, China is continuing to change the facts on the ground in the South China Sea," Senator Dan Sullivan said in a statement.

"Building two dozen structures designed to house surface-to-air missiles clearly violates Chinas previous promises not to militarise this vital region, where USD 5.3 trillion of trade  USD 1.2 trillion of it from the US  passes each year," he said.

Sullivan said the US military should continue to fly, sail and operate in the South China Sea, and everywhere else international law allows.