China could buy up strategic US assets devalued by coronavirus pandemic, senators warn Steven Mnuchin
- Potential targets could include technology, aerospace and energy companies that have lost value
- Lawmakers tell US Treasury secretary that China is ‘looking to exploit the economic crisis wrought by the pandemic to gain control of distressed companies’
Seven US senators have urged Treasury Secretary Steven Mnuchin to limit Chinese companies from taking advantage of stock prices depressed by the coronavirus pandemic to buy strategic US assets.
In the letter, sent on Wednesday by a group led by Republican Senator Marco Rubio of Florida, the lawmakers said they took the action after receiving “disturbing” reports that “government-backed Chinese companies are reportedly approaching banks to identify and facilitate the purchase of American and European companies affected by the pandemic”.
China is “looking to exploit the economic crisis wrought by the Covid-19 pandemic to gain control of distressed companies”, they wrote, saying it was urgent that the US to protect against such predatory economic behaviour.
The warning comes as other countries take measures to fend off expected Chinese corporate acquisition, in fear that the pandemic could present a buying opportunity for countries like China to scoop up strategically important assets – including technology, aerospace and energy – that have lost value.
The European Union told its member governments to consider buying stakes in companies to stave off the threat. India and Australia have also warned about the need to keep key industries from falling into the hands of adversaries.
