2018年CRI Is 'national security' a good excuse for limiting foreign investment?

 

While China is further opening up its economy to the world, the United States is gradually turning itself into the "Man in the Case", a character created by Russian literary giant Anton Chekhov, the China Radio International (CRI) commented in an article recently.

For years, the US has used the excuse of "national security" to put limits on foreign investment. As for the current conflicts between the US and Turkey, White House spokesperson Sarah Sanders unsurprisingly used the same reason to explain that the tariffs¹ the US placed on Turkey "were out of national security interest".

"The tariffs that the United States placed on Turkey were out of national security interests. Theirs are out of retaliation². The tariffs that are in place on steel would not be removed with the release of Pastor³ Brunson, the tariffs are specific to national security," Sanders said earlier this week.

But, what does "national security" actually mean? 

There is no exact answer to this question. America has long been questioned by other countries about the ambiguity⁴ of the definition. And China has been one of the main victims of America's tightening⁵ restrictions⁶ on foreign investment as the US has recently strengthened the Committee on Foreign Investment in the United States (CFIUS).

In January this year, US blocked MoneyGram's sale to China's Ant Financial. And about two months later, it vetoed Dabeinong's deal with Waldo Farms. Both deals were stopped by the US for the same national security reason. According to the 2015 annual report released by CFIUS, among the 143 transactions it reviewed, 29 transactions - which was more than 20 percent - involved Chinese companies. 

Due to a tightening on Chinese investment, mergers⁷, acquisitions, and direct investment by Chinese investors⁸ in the US totaled only 1.8 billion US dollars in the first five months of 2018, down 92 percent year-on-year. That's according to a report by the New York-based Rhodium Group. 

On the contrary to America's rising protectionism, China continues to move forward on the path of opening up. 

The country unveiled a shortened negative list for foreign investment in July, with the number of items down to 48 from 63 in the previous version. Meanwhile, there is a new measure announced by the China Securities Regulatory Commission this week that allows more foreign investors to open onshore A-share securities accounts.

Within the January to July period, the Chinese Commerce Ministry⁹ said that foreign direct investment (FDI) rose by more than five percent year-on-year. With more FDI leaning towards hi-tech sectors¹⁰, such as telecommunication¹¹, computer and medical equipment, China also saw improvement on the quality of FDI. 

In all, protecting national security is no more than just an excuse. Imposing¹² even greater restrictions on foreign investment will do harm to the developing of American enterprises - making America go from being the man in the case to the man who buries himself.

1 tariffs   

关税制度； 关税( tariff的名词复数 )； 关税表； （旅馆或饭店等的）收费表； 量刑标准

参考例句：

• British industry was sheltered from foreign competition by protective tariffs. 保护性关税使英国工业免受国际竞争影响。
• The new tariffs have put a stranglehold on trade. 新的关税制对开展贸易极为不利。

2 retaliation   

n.报复，反击

参考例句：

• retaliation against UN workers 对联合国工作人员的报复
• He never said a single word in retaliation. 他从未说过一句反击的话。 来自《简明英汉词典》

3 pastor   

n.牧师，牧人

参考例句：

• He was the son of a poor pastor.他是一个穷牧师的儿子。
• We have no pastor at present:the church is run by five deacons.我们目前没有牧师：教会的事是由五位执事管理的。

4 ambiguity   

n.模棱两可；意义不明确

参考例句：

• The telegram was misunderstood because of its ambiguity.由于电文意义不明确而造成了误解。
• Her answer was above all ambiguity.她的回答毫不含糊。

5 tightening   

上紧，固定，紧密

参考例句：

• Make sure the washer is firmly seated before tightening the pipe. 旋紧水管之前，检查一下洗衣机是否已牢牢地固定在底座上了。
• It needs tightening up a little. 它还需要再收紧些。

6 restrictions   

约束( restriction的名词复数 )； 管制； 制约因素； 带限制性的条件（或规则）

参考例句：

• I found the restrictions irksome. 我对那些限制感到很烦。
• a snaggle of restrictions 杂乱无章的种种限制

7 mergers   

n.（两个公司的）合并( merger的名词复数 )

参考例句：

• Mergers fall into three categories: horizontal, vertical, and conglomerate. 合并分为以下三种：横向合并，纵向合并和混合合并。 来自辞典例句
• Many recent mergers are concentrated within specific industries, particularly in retailing, airlines and communications. 现代许多合并企业集中进行某些特定业务，在零售业、民航和通讯业中更是如此。 来自英汉非文学 - 政府文件

8 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

9 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。

10 sectors   

n.部门( sector的名词复数 )；领域；防御地区；扇形

参考例句：

• Berlin was divided into four sectors after the war. 战后柏林分成了4 个区。 来自《简明英汉词典》
• Industry and agriculture are the two important sectors of the national economy. 工业和农业是国民经济的两个重要部门。 来自《现代汉英综合大词典》

11 telecommunication   

n.电信，远距离通信

参考例句：

• Telecommunication is an industry of service.电信业是一个服务型的行业。
• I only care about the telecommunication quality and the charge.我只关心通信质量和资费两个方面。

12 imposing   

adj.使人难忘的，壮丽的，堂皇的，雄伟的

参考例句：

• The fortress is an imposing building.这座城堡是一座宏伟的建筑。
• He has lost his imposing appearance.他已失去堂堂仪表。