Companies
US company defends acquisition by Chinese
US lawmakers are urging Treasury Secretary Jack Lew to review and reject a Chinese company’s acquisition of a US aluminum maker as a threat to national security, but the Ohio-based manufacturer denied the charge.
In August, Zhongwang USA LLC, a unit of aluminum maker China Zhongwang Holdings Ltd, said it would purchase US-based Aleris Corp in a deal that then valued the company at about $2.33 billion. The Ohio-based Aleris supplies fabricated aluminum products to the aerospace, construction and automotive industries.
A letter from 12 US senators sent on Wednesday to Lew said the deal should be rejected because it would “directly undermine our national security, including by jeopardizing the US manufacturing base for sensitive technologies in an industry already devastated by the effects of China’s market distorting policies”, according to The Wall Street Journal and Bloomberg News.
The deal would create a “serious risk that sensitive technologies and knowhow will be transferred to China, further imperiling US defense interests”, they wrote.
Senators signing the letter include Ron Wyden, Democrat of Oregon, Charles Schumer, Democrat of New York, and Rob Portman, Republican of Ohio. Wyden is ranking member of the Senate committee of finance overseeing trade.
Lew chairs the Committee on Foreign Investment in the United States (CFIUS), which includes officials from the Defense, State and Justice departments and reviews acquisitions of US businesses by foreign buyers. It can impose conditions on transactions or recommend that the president block them.
In a statement, Aleris denied the deal would threaten national security, and noted that the company manufactures no products at its US facilities that have any defense applications.
“Less than one percent of our sales go into defense applications, and none of those goods are produced in the US. The technology to produce aluminum plate, which is used in some military applications, is…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
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Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
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Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
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