Donald Trump's agenda threatens Jack Ma's US expansion plan

BEIJING: Chinese billionaire Jack Ma's latest US expansion plan is facing rising political obstacles.

On Friday, two members of the House of Representatives urged the Committee on Foreign Investment in the US to conduct a "full and thorough" investigation of Ant Financial's proposed acquisition of MoneyGram International Inc, a money-transfer service.

"The proposal merits careful evaluation as it would provide Chinese access to the US financial infrastructure, a move that would pose significant national security risks if completed," Congressman Kevin Yoder and Congresswoman Eddie Bernice Johnson wrote in a letter to Treasury Secretary Steven Mnuchin.

Formerly a financial-services affiliate of Alibaba Group Holding Ltd and controlled by Ma, Ant made its bid in January for $880 million, or $13.25 a share. In March, Leawood, Kansas-based rival Euronet Worldwide Inc came in at $15.20, saying its offer had a better chance at regulatory approval.

Dallas-based MoneyGram entered a confidentiality agreement with Euronet in late March to further consider its unsolicited proposal.

President Trump has taken a hard stance on China since taking office, increasing the chance Ant Financial's bid will be closely scrutinised by CFIUS, an inter-agency panel that examines acquisitions of companies by foreign investors. The White House can stop the deal, and Mnuchin is the chairman of the panel.