China has openly expressed its concerns and opposition to the US' continued move to place obstacles for investors to enter the Chinese market. Officials stated that the continued use of so-called national security to politicize valid investment activities will only end up harming its own interests.
Foreign Ministry spokesman, Zhao Lijian, mentioned in a statement that the White House's recent efforts to block the shifting of billions of dollars worth in federal retirement funds to a new investment fund that includes Chinese equities will only result in Americans missing out on opportunities. Zhao also stated in a news conference in Beijing, that the proposed freeze of the investment is incompatible with the laws of economics.
The response from China comes after reports had surfaced that the Trump administration was considering the freezing of a transfer of around $50 billion from the US Thrift Savings Plan (TSP) to a new fund that mirrors the MSCI All Country World Index. Officials against the transfer pointed out that the new fund does include Chinese equities, which they claim could be a risk to national security.
Zhao told reporters that China has always upheld the notion that all countries should work together in this era of globalization. He added that the US has much to gain in investing in China's capital markets, which has become increasingly favored by global investors. China's efforts in further opening up its capital markets have resulted in increased foreign investment, which has been seen as a sign of the growing confidence in the steady progress of the country's economy.
At the news conference held on Wednesday, Zhao openly criticized US Senator Lindsey Graham and her proposal to impose sanctions against China over accusations that it had been responsible for the spread of the coronavirus pandemic.
Zhao called the action "extremely immoral," stating that the country is firmly opposed to the proposition. He added that passing such legislation against China is likely the US' way of hiding its own incompetence in how it had handled the crisis. He added that instead of trying to find someone else to blame for its catastrophic handling of the pandemic, US politicians should instead focus on saving American lives.
The official explained that China has maintained open communications with global health officials since the outbreak began and it is working tirelessly with all countries to come up with potential systems to better handle the crisis and similar challenges in the future.
