Published: Tue, August 01, 2017
World Media | By Shelia Harmon

'Growing Mistrust Between China and US' at Heart of North Korean Antagonism

'Growing Mistrust Between China and US' at Heart of North Korean Antagonism

The White House should order the national security watchdog Committee on Foreign Investment in the United States to prevent all mergers and acquisitions by Chinese companies in the United States until Beijing takes meaningful steps to rein in North Korean aggression, Senate Minority Leader Charles Schumer (D-NY) wrote in a letter to President Trump.

This request follows USA concerns about the threat of North Korea's nuclear and missile programs with President Trump repeatedly asking China to curb North Korea's excesses with his most recent tweet expressing his disappointment in China.

Meanwhile, the primary USA strategy for North Korea continues to lean hard on China to "put a heavy move", whatever that means, on North Korea.

The United States secretary of state, Rex W. Tillerson, has turned up pressure on China to help isolate and cajole North Korea.

Beijing has continued to urge for talks regarding North Korea, whereas Washington and its allies have stressed on the need to increase sanctions, both unilaterally and through the UN.

As the tensions with North Korea have escalated, Mr. Trump has often treated Mr. Xi in public as a friend who was valiantly, though unsuccessfully, trying to bring North Korea around. His worry, however, was not North Korea but that China would close the technology gap between the USA and Chinese militaries.

In an interview with Reuters Friday, the top usa counter-intelligence official suggested the Trump administration was already working on a plan to toughen CFIUS.

"But overall", and upbeat Trump said, "I think we are doing incredibly well". Washington has normally requested an emergency UN Security Council meeting following Pyongyang's nuclear and missile tests, but it appears to be taking a different course of action as US ambassador to the UN Nikki Haley says Washington will not be requesting an emergency meeting of the council this time around.

"(The United States and North Korea) hold the primary responsibility to keep things moving, to start moving in the right direction, not China", China's U.N. Ambassador Liu Jieyi told reporters on Monday. The reported recent tightening of China's outbound foreign direct investment (OFDI) controls in tandem with state funding for OFDI in many sectors indicate that major foreign investments in the US from China are increasingly tied to state interests.

"What sounds like effectively a bar on Chinese investment that is being suggested is probably legal but quite different than the case-by-case process that CFIUS has used in the past", said Stephen Heifetz of the law firm Steptoe & Johnson LLP who represents clients before CFIUS. Suspending Chinese firms' ability to acquire companies in the USA would be one such action.

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