BEIJING: The United States’ newly proposed rules to expand restrictions on outbound investment to China risk further politicizing and weaponizing bilateral economic and trade ties, market watchers and business leaders said.
They stressed that Washington’s restrictive moves to deter US investment in China will neither diminish China’s strong market vitality and industrial appeal nor deliver benefits to either side.
The concerns came after China’s Ministry of Commerce expressed strong opposition on Saturday to proposed outbound investment rules released recently by the US Department of the Treasury for public comment, warning that Beijing reserved the right to take corresponding measures.
The proposed changes would add biotechnology to the list of restricted sectors and expand existing controls on high-performance computing and hypersonic technologies. The restrictions would apply to China and other countries designated as “countries of concern”.
A ministry spokesperson said the draft regulations would discriminatorily expand restrictions on US investment in China, describing them as an abuse of the concept of national security that would undermine the international economic and trade order. The commerce official said that China’s large market offers substantial potential for consumption and investment, and that investing in China means investing in the future.
The proposed restrictions could also complicate efforts by US biopharmaceutical companies to access Chinese biotechnology innovations and pursue cross-border research partnerships, according to industry analysts.
John Crowley, president and CEO of the Washington, DC-based Biotechnology Innovation Organization, warned that overly broad investment restrictions could create uncertainty for innovators and investors, potentially weakening the competitiveness of the US biotechnology industry.
“We cannot restrict our way to success,” he said in a statement last week.
Jonah Kirkwood, senior vice-president of Agilent Technologies, a California-based analytical and clinical laboratory technology company, said stronger local capabilities and steadier China-US ties could support innovation worldwide by connecting China’s research and manufacturing strengths with global expertise.
Zhu Feng, a professor at Nanjing University in Nanjing, Jiangsu province, said that building a constructive China-US relationship of strategic stability requires both countries to manage differences, maintain channels for cooperation and prevent strategic competition from undermining their broader bilateral relationship.
According to data from the Ministry of Commerce, US companies remain eager to invest in China, with investment from the US rising 7.7 percent year-on-year in the first nine months of 2026.
Meanwhile, US exhibitors including Tesla, Boston Scientific, Rockwell Automation and Nike will collectively account for more than 50,000 square meters of exhibition space at the upcoming ninth China International Import Expo in Shanghai from Nov 5 to 10, up 1,500 square meters from last year, retaining the largest exhibition area among participating countries and regions for the eighth consecutive year.
Having never missed an edition of the CIIE, US industrial group 3M will showcase its latest innovations in automotive technology, electronics and safety, as well as manufacturing materials and automation.
“We have always viewed the CIIE as a key platform for showcasing cutting-edge innovations and expanding local partnerships,” said Henry Ding, president of 3M China, adding that the company will further strengthen its supply chain network in China. –The Daily Mail-China Daily news exchange item
