US Considers Tightening Grip on China Ties to Corporate America

US Considers Tightening Grip on China Ties to Corporate America
U.S. President Donald Trump and Chinese leader Xi Jinping about to shake hands at the Great Hall of the People in Beijing, China, on November 9, 2017. Damir Sagolj/File Photo/Reuters
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NEW YORK—The U.S. government may start scrutinizing informal partnerships between American and Chinese companies in the field of artificial intelligence, threatening practices that have long been considered garden variety development work for technology companies, sources familiar with the discussions said.

So far, U.S. government reviews for national security and other concerns have been limited to investment deals and corporate takeovers. This possible new expansion of the mandate—which would serve as a stop-gap measure until Congress imposes tighter restrictions on Chinese investments—is being pushed by members of Congress, and those in U.S. President Donald Trump’s administration who worry about theft of intellectual property and technology transfer to China, according to four people familiar with the matter.