washington a bipartisan group of lawmakers announced an agreement on legislation that would allow the us government to cut off billions in american investments in chinathe group made an announcement on monday fox business reported on june 14over the last couple of months we have engaged in constructive discussions with stakeholders on developing a robust targeted outbound investment mechanism to ensure the united states is not ceding its manufacturing power in industries critical to our economic and national security to foreign adversaries the senators said in a statement cited by the american media outletthe refined proposal released today has bipartisan bicameral support and addresses industry concerns they addedthe agreement is just one piece of a larger bill aimed at securing us supply lines for computer chips if signed into law the deal would allow the us government to review nearly half of all direct investment transactions from the us to china according to an analysisthe china policy comes as president joe biden considers ending us tariffs on china imposed under former president donald trumpthe deep recession in chinas real estate companies is becoming a major problem for the country as well as for the worlds economythe property market was one of the few cherished destinations for household savings the developers and homebuyers were also willing to take the loans from the banks but these good days for china ended last year the household debt touched over 10 trillion and around 27 per cent of bank loans in china are tied to real estate reported a think tank policy research group poregthe housing market in china is now seen as a national threat as prices rise skyhigh just like the buildings according to think tank citing new york timesdevelopers borrowed money in the form of onshore and offshore bonds trust loans and wealth management products in addition to bank loans thus lenders span from institutions to the general people both at home and overseasinterestingly beijings assault on property debt is part of the countrys battle to control corporate debt much of the corporate is held by the stateowned firms soes in seos overindebtedness is the root of the problem with one difference for soes the debt is laced with government guarantees and hence there is no imminent threat of liquidationchina has a debt to pay to the global market it has benefitted from the globalization of the market its companies though anchored behind the bamboo curtain have spread to all corners of the world with their unadulterated motto that money has no colour a crash in china could bleed into other countries and lead to deflation as also unemployment according to think tank citing cnbc analysisover chinas failing economy us federal reserve also felt worried that it could harm the global economy stresses in chinas real estate sector could strain the chinese financial system with possible spillovers to the united states the federal reserve said in its recent financial stability report