China Objects to US Outbound Investment Restrictions
China this week criticized the recent U.S. restrictions on outbound investment in three advanced technology sectors in China (see 2308090066).
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A Foreign Ministry spokesperson said China "strongly deplores and firmly opposes the US's single-minded rollout" of the restrictions, adding the measures are a "clear act of overstretching the concept of security" whose true purpose is to "pursue U.S. supremacy at the expense of others." The remarks were provided in English from the Ministry of Foreign Affairs.
The restrictions are "blatant economic coercion" that violate market economy principles as a move to "phase China out," the spokesperson said. The ministry urged President Joe Biden to not decouple from China, "immediately cancel the wrong decisions" and remove the restrictions.
China's Ministry of Commerce also objected to the rules, saying the U.S. is decoupling with China "under the guise of 'de-risking,'" according to an unofficial translation. "China is seriously concerned about disrupting the security of the global industrial and supply chains and reserves the right to take measures."
A State Department spokesperson told reporters Aug. 9 that U.S. officials spoke about the restrictions during meetings with Beijing, and the country's foreign minister objected to them "quite strenuously." China "objected to those as they have objected to our export controls and other measures that we have taken," the spokesperson said.
The spokesperson said he wasn't "aware" whether Chinese officials previewed any retaliatory measures Beijing may take. "We have also made the point to them a number of times that we believe it’s important that even though we will be taking these actions -- just as they take policy actions that we don’t agree with -- we think it’s still important that we have the ability to have conversations about our areas of disagreements, so we can make sure that the relationship doesn’t deteriorate; and so that we have the ability to manage through crises and manage through other situations."