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US Lawmakers Submits A Bill Preventing China From Acquiring US Businesses Struggling During The Pandemic


US Congressman Mark Green intends to introduce a new bill to prevent China from acquiring businesses important to its national security, namely businesses "providing equipment and systems." and technology for the US military.

“China is seeking to take advantage of the Covid-19 crisis to devour American companies in distress - economically vulnerable and thirsty but vital to ours defense.”
Mr. Green said in a statement.

The lawmaker did not specify which areas of the business the Chinese government was interested in, but said the US "would be vulnerable and vulnerable to China" if US supply chains were not guaranteed.

Mr. Green said he would submit the SOS ACT bill (Secure Our Systems Against China's Tactics - which will allocate $ 10 billion from the budget of The CARES Act, the Covid-19 epidemic relief package issued by President Trump in late March, to encourage US investors to invest capital in economically vulnerable companies that play an important role in national security.

The US Congress is currently inactive until at least May due to a social isolation order. China is seeking to take advantage of the pandemic to advance its economic goals, according to a March report by US-based independent consulting firm Horizon Advisory. 

This report analyzes recent policies and announcements published by Chinese government agencies, regional governments and research institutes. In a related development, British lawmakers have also recently expressed concern that China Reform state-owned fund China wants to appoint four new directors to the board of Imagination Technologies, a design firm. The country's leading semiconductor chip. 

Imagination Technologies was acquired by Canyon Bridge, an American investment fund - in 2017. However, Canyon Bridge is backed by China Reform of China.

"We think China is trying to export our technology base to China, and this is not good."

British lawmaker David Davis told Reuters on April 14.

Not only the UK, governments in many other countries around the world have also sounded alarm bells about China's ambition to acquire businesses suffering financial losses due to Covid-19 pandemic.

Last week, India announced that investment from land-sharing countries with the country would need to be approved by government, a move to curb "acquisition" of businesses.

The new investment review law is supposed to target Chinese companies. Two senior Indian government sources, who spoke on condition of anonymity, told Reuters that investments from Hong Kong would also be considered.
At the same time, 

"Germany is also on high alert for every attempt to capitalize on the economic crisis caused by the corona virus to acquire its businesses." 
said Reinhard Hans Bütikofer, a member of the European Parliament. 

Australia's Foreign Investment Review Board is also very alert to plans to acquire foreign businesses, especially by Chinese companies, for local businesses. Phuong is having financial difficulties, the Sydney Morning Herald reported on March 26.

NATO Secretary General Jens Stoltenberg, in an online conference with the defense ministers in the coalition, said on April 15 that:
 "the geopolitical effects of the pandemic could be enormous. Some countries can find ways to take advantage of the recession as a gateway to invest in our important industries and infrastructure. This can affect our security in the long run and actually deal with the next crisis.”
said Mr. Stoltenberg.

However, he did not specify any specific country.


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