Incoming Senate Minority leader Chuck Schumer has called for further scrutiny of Chinese companies' takeover of US firms. In a letter addressed to Treasury Secretary Jack Lew, US President-elect Donald Trump, and US Trade representative Michael Froman, Schumer stated that it needs to be determined whether the takeovers are being managed by the Chinese government.

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The letter specifically pointed out the acquisitions made by Dalian Wanda Group, which snapped prominent American businesses including AMC Entertainment Holdings and a pending deal for Dick Clark Productions. Schumer stated, "I am concerned that these acquisitions reflect the strategic goals of China's government."

The New York democrat also alluded that the upcoming congress is likely to boost oversight authority of the Committee on Foreign Investment in the United States. The committee works under the auspice of the Treasury Department and is entrusted with the task of scrutinizing foreign acquisitions of American companies from national security view point.

The democrat also stressed that while Chinese government encourages acquisition of foreign companies, it does not provide equal opportunities to foreign companies including the US firms to carry out such acquisitions in China. He said that US companies have to face stringent barriers when it comes to buying Chinese firms.

Schumer also claimed that various Chinese acquisitions in fields such as manufacturing and information technology are often backed by government subsidies to promote global expansion. Earlier this year, Wanda's chairman Wang Jianlin had stated that he is not motivated by government motives and that he is a businessman. 

TagsChuck Schumer, donald trump, Dalian Wanda Group