International business article

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Chinese Investment Pits Wall Street against Washington

Who?

This is between the American and Chinese governments. AND The key members are the United States administrators and the Chinese companies that are established in the United States (Ana, 2019).

What?

The key issue being discussed in this article is the move by the American lawmakers trying to stop federal employee funds from flowing into Chinese companies (Ana, 2019). Besides, another concern is the fear of getting other Chinese investments in the United States such as ZTE (Chinese multinational telecommunications equipment and system company), into the mix of receiving the retirement funds.

Where?

This event is happening mainly in the United States but the Chinese government is also involved.

When?

The turn of events started in June 2019, when a bipartisan group of senators brought in 1a legislation that aimed at removing foreign firms that do not comply with the American financial regulators for three years (Ana, 2019). Last week a group of senators sent a letter to the plan’s governing board advising it to reverse its decision. Beginning next year, the fund is planned to be channeled into various Chinese investors.

Why?

The Americans are stopping this move for their fear that it would pump a lot of cash into Chinese companies that could undermine national security.

How?

The Chinese pose a threat to the American market by skirting the auditing process and disclosure requirements of the American stock exchanges, putting investors at risk (Ana, 2019).

References

Ana, S., (October 28, 2019). Chinese Investment Pits Wall Street Against Washington. Retrieved from: https://www.nytimes.com/2019/10/28/business/china-investment-federal-employees.html