What Happened: China's commerce ministry released a draft of rules that would lower barriers to foreign investment while also expanding the list of which foreign investments are investigated for national security concerns, the Financial Times reported July 30.
Why It Matters: China is instituting changes to its restrictive foreign investment criteria to encourage foreign investment and expand its own national security reviews amid heightened scrutiny of Chinese investment by the United States, the European Union and others.
Background: The U.S. government has recently blocked numerous attempts from Chinese firms to purchase U.S. companies and assets. Australia, the United Kingdom and some EU countries have also worked to limit investment from China on national security grounds.
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