China keen to seek benefits from pandemic, distressed US assets: Report

The US lawmakers and policymakers should be wary of China's moves to target vulnerable US assets and expand its market share in the wake of the global economic crisis triggered by the novel coronavirus, news agency Reuters reported quoting a study prepared for a US trade group and released on Tuesday.

The reported quoted Horizon Advisory report for the Alliance for American Manufacturing (AAM). According to AAM report the Chinese Communist Party viewed the crisis as "a chance to expand its position in US markets, supply chains and critical infrastructure."

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The consultancy said Beijing used the 2008-2009 global financial crisis to accelerate its "Go Out" industrial offensive in the United States and was positioned to benefit from a likely spike in US infrastructure spending.

"It's a very sophisticated strategy," AAM President Scott Paul said in an interview. "There's a very legitimate debate that needs to occur about the appropriate role of Beijing in the US economy, and there are reasons to be wary of including Chinese state-owned enterprises in our recovery effort."

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Paul said his lobby group was working with Democratic and Republican lawmakers to strengthen and expand provisions that earmark government funds for US companies, and ensure they do not wind up in the hands of Chinese state-owned firms or investors.

Paul said the report showed China had identified "friendly" public officials and states including Kentucky, home of Senate Majority Leader Mitch McConnell, which has attracted increased Chinese investment in recent years.

Chinese acquisitions have come under greater U.S. scrutiny to determine their effect on national security, but takeovers could increase if the crisis left many distressed assets, as expected, he said.

(With inputs from Reuters)