China investment curbs gain traction

A bipartisan group of US lawmakers said on Monday they had agreed on a proposal to give the government sweeping new powers to block billions in US investment into China, though the measure is part of a broader bill with an uncertain future.

News of the provision, part of legislation that aims to boost US competitiveness and grant chipmakers US$52 billion (HK$405.6 billion) to expand US operations, drew opposition from China, which said it would only deprive the United States of opportunities.

"The refined proposal has bipartisan, bicameral support and addresses industry concerns," US Senators Bob Casey and John Cornyn, and Representatives Rosa DeLauro, Bill Pascrell, Jr, Michael McCaul, Brian Fitzpatrick and Victoria Spartz, said in a statement.

This came as Australia's prime minister said yesterday China needs to lift its sanctions on Australia to improve relations as he welcomed as "a good thing" the first talks between ministers from the two countries in almost three years. China is Australia's largest trading partner and the biggest customer for its iron ore.