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China says protectionist sentiment rising in U.S. as deals fall apart

Reuters  |  BEIJING 

(Reuters) - said on Thursday protectionist sentiment is rising in the and criticised for blocking high-profile Chinese takeover of U. S. firm on security grounds.

Financial's planned $1.2 billion purchase of transfer firm International Inc collapsed last week after panel rejected the deal over national security concerns.

It was the most high-profile Chinese deal to be torpedoed since was elected U. S. year ago on promises to put first and protect U. S. jobs from foreign competitors.

"We've noticed recently that protectionist voices have been rising in the U.

S.," Ministry of said in briefing.

was particularly worried about countries using national security concerns as way to block foreign investment, he added.

is owned by Chinese Holding Ltd.

In another blow to the global ambitions of Chinese firms, Technologies Co's planned deal with U. S. carrier Inc to sell its in the also fell apart because of security concerns, people with knowledge of the matter said on Wednesday.

The failed deals come as the U. S. considers several new tariff moves in the coming weeks, including broad restrictions on and aluminum imports and punitive actions against arising from an investigation into Beijing's alleged theft of intellectual property.

"(Trade) remains foremost in my mind as risk for because it's something they can't control," said Michael Spencer, economist for

"But my base case is that we will see more trade frictions this year than last, but that it's not going to led to significant decline in real exports from "

An editorial in the official Daily on Thursday blamed the termination of the Huawei-deal on political pressure instead of considerations, and said this threatened the kind of win-win deals sought.

"This is not the first time U. S. politicians have stooped to mudslinging to prevent the entry of Chinese companies into the U. S. market on the pretext they pose national security threats," it said.

Washington's criticism of China's tightly controlled and restrictions on foreign investment rang hollow, it added.

"Its blocking of deals involving Chinese companies in sectors where it has traditionally had an advantage shows its criticisms have more validity if directed at the U. S. market," the editorial said.

(Reporting by and Stella Qiu; Editing by Stephen Coates)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 10:47 IST
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