Home / News / Advisory Panel: Chinese Investment in US Could Be Seen As ‘Trojan Horse’

Advisory Panel: Chinese Investment in US Could Be Seen As ‘Trojan Horse’

Chinese-owned firms in the U.S. added between 10,000 and 20,000 workers in the past five years and helped shore up some financially troubled U.S. firms, a congressional advisory panel said in a study released Wednesday.

Reuters reports the U.S.-China Economic and Security Review Commission found the investments to be largely driven through subsidies given to state-owned enterprises, often resulting in market distortions.

These investments could be seen by some as a potential Trojan Horse on the U.S. economy, the study said, according to Reuters.

The report says private economists estimated Chinese direct investment in the U.S. to be nearly $30 billion through the end of 2011.

This study, conducted by Capital Trade Inc., comes nearly a month after the House Intelligence Committee recommended the U.S. government not purchase equipment from Chinese telecom firm Huawei, raising concerns the firm’s equipment could be used for espionage.

Check Also

USCIS Launching System Modernization, Supply Chain Security Initiatives

The U.S. Citizenship and Immigration Services is working on modernizing its systems and fortifying software security at the supply chain level, Federal Times reported Friday. Adrian Monza, chief of the Department of Homeland Security component's cyber defense branch, told the publication that USCIS is launching “very significant” modernization efforts and that other agencies must be able to defend their networks against threats to financial databases.

Leave a Reply

Your email address will not be published. Required fields are marked *