Many Americans think that the path of patriotism is to "Buy American," but consternation arises as China announces that it may like to follow the same road: buy into Intel, Apple, Boeing, etc. Meanwhile, the Chinese will sell U.S. Treasuries as soon as it is "safe".
How bad is this? At first blush, not so bad. True, the Chinese may be mainly interestered in cutting edge technology and the ability to get close to it. But, if so, they might find it more difficult than they think to gain access to trade secrets unless they buy whole companies and take them over. I own stocks in several companies whose activities I find truly confusion. Will it be easier for the Chinese?
It also bears recalling that the last time we had a scare of this sort was in the late 1980s when Japan was considered the economic suiperpower. Americans panicked when the Japanese bought motion picture studios and such iconic properties as Rockefeller Center. But buying into America actually is risky, as Americans know, and as the Japanese found out. In any case, what are you going to do with your American property, move it home?
Some national security restrictions make sense. But on balance, the American economy has more to fear from Washington, DC, than from Beijing.