Firms investing in those countries or doing business with firms of those countries.”That would be a significant broadening of America’s existing power when it comes to foreign investment. The United States has broad export controls on sensitive technologies, and it reviews international mergers through the Committee on Foreign Investment in the United States, which can recommend that the president block foreign investments that pose a threat to national security.But the International Emergency Economic Powers Act could expand that power to any type of investment, whether or not it poses a security risk, and allow the administration to potentially block a high volume of Chinese deals, which Cfius does not have the resources to handle.The United States has already thwarted some Chinese investments, and the new rules could potentially prevent Chinese firms from investing in a wider range of deals. China invested about $45 billion in the United States in 2016, according to tracking by the research firm Rhodium Group, up from around $15 billion the previous year.The White House, which has called China an “economic enemy,” wants to target the advanced industries Beijing has vowed to build up as part of its “Made in China 2025” plan.
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