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New US Report Warns Of Chinese Interest In Pandemic Distressed American Assets


06/18/2020


New US Report Warns Of Chinese Interest In Pandemic Distressed American Assets
A study prepared for a U.S. trade group and released on Tuesday issued warning for the lawmakers and policy makers of the United States to be careful while dealing with intentions and moves of China to target US assets that have been made vulnerable because of the novel coronavirus pandemic and the aim of China to expand its market share, taking advantage of the current economic slump.
 
The Chinese Communist Party viewed the crisis as "a chance to expand its position in US markets, supply chains and critical infrastructure", said the Horizon Advisory report for the Alliance for American Manufacturing (AAM).
 
China’s strategy called "Go Out" industrial offensive in the United States was put to use during the 2008-09 global financial crisis by Beijing and this time the country was again positioning itself to reap benefits from a likely increase in infrastructure spending in the US. 
 
"It's a very sophisticated strategy," AAM President Scott Paul said in an interview. "There's a very legitimate debate that needs to occur about the appropriate role of Beijing in the U.S. economy, and there are reasons to be wary of including Chinese state-owned enterprises in our recovery effort."
 
Working together with Democratic and Republican lawmakers in the US, his lobby group was trying to strengthen and expand provisions that earmark government funds for US companies and make sure that such funds to not end up going to the hands of Chinese state-owned firms or investors, Paul said.
 
The group, which was created in by US companies and the United Steelworkers, aims to push for policies for expansion of manufacturing sector in the US. 
 
The long standing policy of the US president Donald Trump has been his attempt to bring back those manufacturing industries and companies that have moved overseas into the United States. But the novel coronavirus pandemic has sparked a government-wide push to move US production and supply chain dependency away from China.
 
China had identified "friendly" public officials and states, including Kentucky, which is the home of Senate Majority Leader Mitch McConnell and one which has also attracted increased Chinese investment in recent year, showed the report, Paul said.
 
There has been greater scrutiny in the US of Chinese acquisitions aimed at determining the effect of such acquisitions on national security. But Paul said that there can be an increase in acquisitions if the crisis resulted in many assets being distressed as was being expected.
 
(Source:www.firstpost.com)