China keen to get advantages from pandemic, distressed US assets: Report
17 June, 2020
U.S. lawmakers and policymakers should be cautious with China's moves to focus on vulnerable U.S. assets and broaden its market talk about in the wake of the global economic crisis triggered by the novel coronavirus, according to a report prepared for a U.S. trade group and released on Tuesday (Jun 16).
The Horizon Advisory report for the Alliance for American Making (AAM) said the Chinese Communist Party viewed the crisis as "an opportunity to expand its position in U.S. markets, source chains and significant infrastructure."
The consultancy said Beijing used the 2008-2009 global financial meltdown to accelerate its "VENTURE OUT" industrial offensive in america, and was positioning to reap the benefits of a likely spike in U.S. infrastructure spending.
"It's a very complex strategy," AAM President Scott Paul said in an interview. "There's an extremely legitimate debate that needs to occur about the correct role of Beijing in the U.S. overall economy, and there are reasons to be skeptical of incorporating Chinese state-owned enterprises in our recovery effort."
Paul said his lobby group was first working with Democratic and Republican lawmakers to strengthen and expand provisions that earmark government funds for U.S. companies, and be sure they do not end up in the hands of Chinese state-owned businesses or investors.
The group was formed in 2007 by U.S. companies and the United Steelworkers to push for policies to grow U.S. manufacturing.
U.S. President Donald Trump features long pledged to deliver manufacturing again from overseas, however the coronavirus pandemic provides sparked a government-extensive push to go U.S. development and offer chain dependency from China.
Paul said the report showed China had discovered "friendly" consumer officials and states including Kentucky, residence of Senate Majority Leader Mitch McConnell, which has attracted increased Chinese expenditure in recent years.
Chinese acquisitions attended under increased U.S. scrutiny to determine their influence on national security, but takeovers could rise if the crisis left various distressed assets, as expected, he said.
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