China Gets Tough on Foreign Investment

China has adopted a serious of measures to discourage foreign direct investment in China.  China's securities regulated has a new takeover code, for example, that stops acquisitions that "harm national security or the public interest."  The Chinese Ministry of Commerce has also declared that it will stop foreign acquisitions that "affect economic security" or involve "key" domestic industries.   Ironically, China's chief economic planning agency is considering further restrictions, patterned after Congressional proposals to expand the power of CFIUS (Committee for Foreign Investment in the United States)  to block foreign investment in the United States.