Chad Bray
US lawmakers have raised the alarm over China’s efforts to acquire technology and advance its manufacturing base, in particular its Made in China 2025 program. The initiative is designed to increase domestic production in a number of key technology sectors, including semiconductors and robotics.
In response, the US has increased its scrutiny of foreign-led mergers and investments and is crafting new rules to restrict the ability of Chinese companies and others to export technology.
It has also banned government agencies from buying equipment from Chinese telecommunications companies Huawei and ZTE. The US is separately pursuing criminal charges against Huawei ranging from financial fraud to violating American sanctions against Iran.
At the same time, fewer funds have been available for investment as Beijing has limited the ability of Chinese companies to bankroll overseas transactions as part of a deleveraging campaign begun in 2016 that has seen some companies forced to sell their foreign holdings.
