China will use all necessary means to defend the interests of the country and its companies against a US trade investigation, the Beijing government has warned.



China’s commerce ministry has already expressed “strong dissatisfaction” with the US launch of an inquiry into alleged theft of US intellectual property, calling it “irresponsible”.

But on Thursday ministry official Gao Feng doubled down on the warnings, telling reporters at a regular news conference: “We will take all the necessary measures to resolutely defend the interests of China and Chinese firms” in the face of the unilateral U.S. actions.

The probe is the Trump administration’s first direct measure against Chinese trade practices, which the White House and US business groups say are bruising American industry.

Gao also said that China’s support for overseas investment by Chinese firms will not change, but that oversight of deals will increase and projects related to China’s Belt and Road initiative will be given priority.



China’s cabinet has released guidelines to manage overseas investments, with certain sectors encouraged and others restricted or banned outright. Overseas investments in areas such as hotels, cinemas, the entertainment industry, real estate and sports clubs have been limited after a spree that has seen wealthy Chinese take control of two English Premiership football clubs. The rules have banned outright investments in enterprises related to gambling and the sex industry.

Mergers and acquisitions by Chinese companies in countries linked to the Belt and Road initiative have been growing at a rapid rate, even as the government takes aim at China’s acquisitive conglomerates to restrict capital outflows.

“We will further improve the overseas investment reporting management system,” said Gao, adding China would push forward legislation to govern foreign investment.