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The world turns away from Chinese money

The world turns away from Chinese money 2

The world turns away from Chinese money

US President Donald Trump last week signed an update to a bill expanding the regulatory scope of the Committee on Foreign Investment in the United States (CFIUS), including small and passive investments in three areas:

Earlier this year, Ant Financial – Jack Ma’s financial company, had to abandon the purchase of money transfer company MoneyGram International, because CFIUS was concerned about data being stolen from US soldiers using this service.

Chinese people in Pudong area (Shanghai).

Previously, “notifying CFIUS was voluntary, at least until CFIUS had a prior opinion,” said Rod Hunter, an analyst at Baker & McKenzie.

Still, it’s unclear what kind of `personal data` will be vulnerable in a world where every company must find a way to monetize such information to get ahead.

China’s challenge lies not only in the United States.

This month, German Chancellor Angela Merkel for the first time rejected a deal for a Chinese company to buy a German machine tool company – Leifeld Metal Spinning.

Even the UK, which wants to strengthen relations with China due to the effects of Brexit, is also proposing to remove control limits on M&A of small companies, buying small shares or even buying intellectual property rights.

Of course, Bloomberg believes that this does not mean that Beijing will have to give up its Made in China 2025 ambition. They can still use joint ventures to achieve the desired technology.

However, the truth is that China does not have many options to bring back the technology it needs.

China has committed to licensing investment in the financial sector, after decades of complaints from Wall Street.

However, at least for now, the world’s doors are still closed to investment from China.

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