U.S. lawmakers should take action to ban China’s state-owned enterprises (SOEs) from acquiring U.S. companies, the U.S.-China Economic and Security Review Commission said. In its annual report to Congress, it recommended that Congress prohibit U.S. acquisitions by such entities by changing the mandate of the Committee on Foreign Investment in the United States (CFIUS), the U.S. government body that conducts security reviews of proposed acquisitions by foreign firms. CFIUs, led by the U.S. Treasury and with representatives from eight other agencies, including the Defense, State, and Homeland Security departments, has a veto over acquisitions from foreign private and state-controlled firms if it finds a deal would threaten national security or critical infrastructure. If enacted, the panel’s recommendation would essentially create a blanket ban on U.S. purchases by Chinese SOEs. The report “has again revealed the Commission’s stereotypes and prejudices,” Chinese Foreign Ministry Spokesman Geng Shuang said in Beijing. The United States and U.S. businesses attracted a record USD64.5 billion worth of deals involving buyers from China this year, more than any other country targeted by Chinese buyers, according to Thomson Reuters. CFIUS has shown a higher degree of activism against Chinese buyers this year. Prominent deals that fell through include Tsinghua Holdings’ USD3.8 billion investment in Western Digital, the Shanghai Daily reports.