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

FireEye

FireEye to Provide Cybersecurity Defenses to Texas DIR; Pat Sheridan Quoted

FireEye, Inc. has announced that it will offer cyber security defenses to Texas public sector agencies, under Texas Department of Information Resources (DIR), the company reported on Thursday. Through the end of 2020, FireEye security products and Mandiant Solutions services will be available to all Texas agencies, county governments, cities and school districts through DIR’s Bulk Purchase Initiative for Endpoint Detection and Response (EDR) solutions.

Leave a Reply

Your email address will not be published.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