Beijing lashed out Monday at President Trump’s order curtailing Chinese investment in critical U.S. sectors, saying it will hurt America’s interests and undermine its “international credibility.”
Foreign Ministry spokesman Lin Jian said China lodged “serious protests” with the U.S. side.
“The tightening of security reviews targeting Chinese investments in the U.S. severely hits the confidence of Chinese companies in investing in the U.S. and what is being undermined is the business environment in that country,” Mr. Lin said. “We urge the U.S. to abide by international investment and trade rules, respect the laws of market economy, stop politicizing and weaponizing economic and trade issues and stop undermining China’s legitimate right to development.”
Mr. Trump signed Friday an American First Investment Policy that says “certain foreign adversaries,” including China, systematically invest in the U.S. to gain access to important technologies and intellectual property.
The White House memo directs the Committee on Foreign Investment in the United States to establish new rules to limit China’s efforts to pilfer U.S. intellectual property. It also requires CFIUS to consider new or expanded restrictions on U.S. outbound investments to China.
The order restricts Chinese investment in “the crown jewels” of the United States — technology, food supplies, farmland, minerals, natural resources, ports and shipping terminals.
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“Economic security is national security,” the memorandum states.
Mr. Trump has taken a hard line on China, economically, imposing a new 10% tariff on Chinese goods in the first days of his presidency. Yet he’s also tried to build his relationship with Chinese President Xi Jinping and plans to host him in the U.S.
China said the latest restrictions would boomerang back on the U.S.
“The increasing of restrictions on U.S. investments in China is a deliberate interference with the independent decision-making of U.S. companies and distortion of investments between the two countries,” Mr. Lin said. “By shutting out Chinese companies and the Chinese market, the U.S. will end up hurting its own economic interests and international credibility.”
• Jeff Mordock contributed to this report.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.