China urges US to drop expanded outbound investment curbs

· Economy · China · United States

China said it "firmly opposes" a US Treasury proposal to expand the scope and increase the severity of restrictions on US investment in China, calling it discriminatory and "a typical example of an overly broad application of national security concerns." Beijing urged Washington to halt the move, saying a proposed rule on sensitive technologies would damage bilateral economic ties. The dispute adds to friction between the world's two largest economies over technology and capital flows.

Why it matters：Tighter US capital controls on sensitive technology could accelerate the decoupling of investment flows between the two economies and invite retaliation.

Key points

  • China called the proposal discriminatory and overly broad.
  • Beijing said the rule would damage bilateral economic ties.
  • The US Treasury wants to widen and toughen existing investment limits.

Sources (original reporting)

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