FX.co ★ White House effectively bars Chinese firms from spying

Washington does not welcome Chinese companies for a simple reason. They are frequently involved in scandals because seemingly commercial firms are disguised as intelligence units that actively conduct espionage activities in other countries. In response, US legislators have slapped various restrictions on Chinese investments. In fact, American sanctions have taken their toll. China’s activity in US markets has shrunk to the lowest extent in 17 years.

Analytical think tank Dealogic has acknowledged that Washington’s policy on Chinese espionage companies has proven its efficiency. According to the latest estimates, China’s investments, including mergers & acquisitions, sank to $221 million for the first time since 2006. Remarkably, investments equaled $3.4 billion a year ago. Besides, simmering geopolitical jitters and escalating tensions in diplomatic relations between Beijing and Washington also do not encourage trade partnership. As a result, Chinese firms have to shift investments to other countries. Among numerous restrictions, the ban on access to semiconductor technology is the most painful to China. Moreover, Beijing is extremely irritated about military and technical cooperation between the US and Taiwan.

In addition, Beijing has not forgotten yet the incident in February when a Chinese balloon was shot down in US airspace. Beijing claims that "the balloon was a meteorological probe," but US authorities consider it a "spy device."

In the meantime, Chinese investors have to deal with available options and invest in production facilities in Southeast Asia as well as mining and energy projects in Asia, the Middle East, and South America. Experts say that Chinese businesses have to explore investment opportunities beyond the US to search for new allies and ensure access to strategic resources.