Bangladesh, Oct. 26 -- As international investment in China continues to grow, American investors face an increasingly difficult position. While companies from other countries seek opportunities in one of the worlds largest and most dynamic markets, US investors are confronted with expanding government restrictions that could limit their ability to compete. Washington must carefully consider the economic consequences of these policies and listen to concerns from American farmers, pharmaceutical companies and investors before imposing further controls.

The US Treasury Department recently released a revised proposal to strengthen restrictions on American investments abroad, inviting public comments through December 7. The proposal expands ...