A senior Chinese official on Wednesday urged the United States
to clarify the range of sectors where investment by foreign firms
might be required to undergo scrutiny.
Zhang Xiaoqiang, vice minister of China's National Development
and Reform Commission, urged the U.S. government to clarify the
definition of "national security", which it said was its main
reason for tightening checks on investors.
Zhang cited the Foreign Investment and National Security Act of
2007, which became effective in the United States in October,
saying it had brought an uncertainty to China's future investment
in the country.
The act intensified "security" checks over foreign investment in
key infrastructure projects and the high-tech industry, and also
strengthened examination of foreign state-owned enterprises, he
said on the sidelines of the ongoing Third China-U.S. Strategic
Economic Dialogue (SED).
Chinese companies aiming to invest in the United States were
facing unclear prospects, considering the structure of their
ownership and their major fields of focus, he said.
"We think that the U.S. policies and regulations should not show
an evident discrimination against Chinese enterprises that plan to
invest in the country," he said.
He also suggested that China and the United States set up a
mechanism to inform each other of important changes in investment
policies and major investment projects.
Special officials should be designated to take charge of the
mechanism, exchange ideas about policy alterations or investment
projects, and notify domestic enterprises of important information,
he said.
Each side, if requested, should explain its laws and regulations
related to the investment projects of interest to the other side,
he said.
He hoped the two sides could increase dialogues to create a
better environment for investors of both sides.
Companies from the two countries were keen to cooperate in the
chemical, medical, mechanical, space and electronic fields, and it
was necessary for the governments to create a good investment
environment, he added.
(Xinhua News Agency December 13, 2007)
