Paper Example on Investment Restrictions

Introduction

The US government is checking on investments carried out by Chinese investors in the country. Using modern technology, the government has invoked a sensitive act earmarked for nationwide predicaments as part of the mitigating solutions that could be familiar to the citizens. US officials who are in the Treasury Department are finding ways of inculcating the use of technology in various industries thereby regulating investment among the Chinese. These sectors include; 5G wireless and semiconductors according to people with information on the proposal who spoke on the state of anonymity (Xingxin 255). President Donald Trump plan to stop China from investing in the country as the latest step to curb what the nation considers as breach of law in the U.S intellect possessions rights http://www.reuters.com>news>archive. Treasury secretary Stephen Mnuchin was requested by the president to consider investment restrictions on Chinese companies the previous week when the department conveyed the outcomes of the accusation into China's activities. It is supposed that the dreams many investors had would fail as Trump took office since new investment restrictions would deepen and slow down in the US. Therefore American companies would fail to raise capital and hold down valuations as their abilities would be hurt (Xingxing 255).

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Actions

To implement the proposed agendas effectively, foreign investment will be limited. The government is setting harsh and strict rule and regulations that need to be followed by investors who want to invest in the US. The rules require so much to be accomplished an action that put them off from investing. In an interview with Fox Business Network, Commerce Secretary Wilbur Ross said that there would be many limitations to those foreigners who want to invest in the country. Ross also added that Trump is online to form and pass other actions that will be followed on the same. The economy of the country is yet to decline as some foreign companies have retreated due to these limitations (Jason 382). The trade issue would end as people would start thinking of other ways to settle the problem which will move to China to carry out their business. Negotiations about the issue are a long process that will be needed to settle down on the new issues. Trump rejected a proposed idea from a China-based in Singapore to move their wireless company to the US. He blocked also Lattice semiconductor Company which is a privately owned business by asset manager from China.

Measures Were Taken

US government is looking on ways in which will favor American investors and discourage investors from other countries and mostly from China. The government is doing so by enforcing strict reciprocity and curbs their acquisitions. Among the business opportunities, the Chinese are banned from undertaking and investing are car manufacturing and telecommunication networks (Jason 381). They consider it as to protect earth exploration hence safeguarding the environment. The relevant authorities have stated that the government is not yet done with its plans and more considerations on restrictions put into place. Enforcing rules that curb Chinese investments in the US would lead to restating CFIUS process a condition that we will be used to dictate the nation's security. The answer to the question about duties carried out by CFIUS is not much as the regulation on investment is still in progress. The government has granted the legislature more power to review foreign investment in the nation (Jason 387). Setting up businesses by the Chinese has dropped from 53 dollars to 31 dollars last year and the previous year.

Works Cited

Li, Xingxing. "National security review in foreign investments: A comparative and critical assessment on China and US laws and practices." Berkeley Bus. LJ 13 (2016): 255.

Silver, Jason. "China's Asymmetric Intelligence Advantage: The State Security Law." Orbis 59.3 (2015): 380-397.

http://www.reuters.com>news>archive