China’s Commerce Ministry said it “firmly opposes” a US Treasury proposal to widen and toughen restrictions on US investment in China, describing the approach as discriminatory and an overly broad use of national security. The ministry said it will monitor developments and warned the rule would harm bilateral economic ties, while reserving the right to take corresponding measures without detailing them.
Expansion Of Outbound Investment Security Program
The proposal, put forward on Thursday, would expand the Outbound Investment Security Program by tightening limits on US capital flows into hypersonics, quantum, high-performance computing, supercomputing and AI across China, Russia and North Korea, and would add biotechnology to the targeted sectors.
Market Reaction And Rising Trade Tensions
In market moves, the Australian Dollar eased, with AUD/USD down 0.09% at 0.7028. The broader backdrop includes renewed US-China trade tensions: the current US President, Donald Trump, returned as the 47th President and imposed 60% tariffs on China on 20 January 2025, after pledging the measure during the 2024 campaign.
