China voices firm opposition to US proposal to expand outbound investment curbs

China on Saturday expressed "grave concern" and "firm opposition" to a recent US Treasury proposal that would expand and intensify restrictions on outbound investment in China, calling it a discriminatory move and a typical practice of overstretching the concept of national security.

A spokesperson for China's Ministry of Commerce made the remarks in reply to a media query on the US Treasury's proposed updates to the outbound investment security program, which are open for public comment.

The proposed rules "run counter to the important consensus reached by the two heads of state, disrupt normal economic and trade cooperation between Chinese and US enterprises, and undermine the international economic and trade order," the spokesperson said.

China will closely follow further developments and reserve the right to take corresponding measures, the spokesperson noted.

"US restrictions on investment in China would not only harm China-US economic and trade cooperation but also hurt the interests of US firms," the spokesperson said, noting that investing in China is investing in the future as the country boasts immense consumption and investment potential with its super-large market.

China urges the US side to respect market economy principles, stop overstretching the concept of national security, stop politicizing and weaponizing economic and trade issues, and create a sound environment for bilateral economic and trade cooperation, according to the spokesperson.