

The Trump administration is so alarmed that Chinese investors may try to purchase Westinghouse Electric Co.’s nuclear business that U.S. officials are trying to find an American or allied buyer for the company instead, two people familiar with the matter said.



Cabinet members including Energy Secretary Rick Perry and Treasury Secretary Steven Mnuchin have discussed preventing Westinghouse’s purchase by a Chinese-linked company, three U.S. officials said.



For years, Chinese entities have been interested in the nuclear reactor builder, and the company has been a repeated target of Chinese espionage. Westinghouse filed for Chapter 11 bankruptcy protection on March 29 and its parent company Toshiba Corp. is seeking a buyer for its money-losing reactor business.



American officials are worried that a buyer could be linked to China -- either directly or through an investment group with hidden Chinese backing - and are taking extraordinary steps to prevent the company from falling into Chinese hands.



Administration officials so far have examined three potential courses to keep Westinghouse out of Chinese hands, said a person familiar with the discussions. The government might block a sale to a Chinese buyer; encourage an alternative bid from U.S. or friendly foreign investors; or the government might invest in the company directly in return for an equity stake, akin to the Obama administration bailout of U.S. automakers.Play Video

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Source: Bloomberg