U.S. Lawmaker Prioritizes Legislation to Curb Investment in China
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On Thu, 26 Sept, 12:06 AM UTC
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Legislation to curb US investment in China is top priority, lawmaker says
WASHINGTON (Reuters) - The Republican chair of the House select committee on China said on Wednesday the panel's top priority is legislation restricting U.S. investment in China to stop U.S. investors from "funding our own demise". "We have to have an outbound investment regime that basically says, 'No investment in these businesses that are on some kind of a list,' that says, 'We shouldn't be helping the Chinese military, we shouldn't be supporting genocide,'" Rep. John Moolenaar said, speaking on a panel at the American Enterprise Institute. "That's probably our number one priority right now," he added. "We are actually funding our demise." Moolenaar's spokesperson confirmed that "genocide" referred to China's alleged treatment of its Uighur minority in Xinjiang. The Chinese Embassy in Washington did not immediately respond to a request for comment. The remarks signal Congress could revive long-sought restrictions on U.S. investment in China, which have faced a rocky path in Washington. A measure restricting outbound investment was stripped out of the Chips Act before it was signed into law in 2022. In August 2023, Democratic President Joe Biden issued an executive order giving the Treasury Department the authority to bar or restrict U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems. But rules implementing that order, proposed in July, have yet to be finalized. Treasury did not respond to a request for comment on the status of the proposed rules. Moolenaar said House Speaker Mike Johnson "would like to have something before the end of the year." Johnson's office did not respond to a request for comment. The United States and other Western countries have imposed sanctions on Chinese officials for human rights abuses in Xinjiang, which the United States has said have amounted to genocide. China rejects allegations of abuses including use of forced labor in Xinjiang, and describes the camps it has set up there as vocational training centers for Uighur Muslims that help combat religious extremism. (Reporting by Alexandra Alper; editing by Mark Heinrich and Kevin Liffey)
[2]
Legislation to Curb US Investment in China Is Top Priority, Lawmaker Says
WASHINGTON (Reuters) - The Republican chair of the House select committee on China said on Wednesday the panel's top priority is legislation restricting U.S. investment in China to stop U.S. investors from "funding our own demise". "We have to have an outbound investment regime that basically says, 'No investment in these businesses that are on some kind of a list,' that says, 'We shouldn't be helping the Chinese military, we shouldn't be supporting genocide,'" Rep. John Moolenaar said, speaking on a panel at the American Enterprise Institute. "That's probably our number one priority right now," he added. "We are actually funding our demise." Moolenaar's spokesperson confirmed that "genocide" referred to China's alleged treatment of its Uighur minority in Xinjiang. The Chinese Embassy in Washington did not immediately respond to a request for comment. The remarks signal Congress could revive long-sought restrictions on U.S. investment in China, which have faced a rocky path in Washington. A measure restricting outbound investment was stripped out of the Chips Act before it was signed into law in 2022. In August 2023, Democratic President Joe Biden issued an executive order giving the Treasury Department the authority to bar or restrict U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems. But rules implementing that order, proposed in July, have yet to be finalized. Treasury did not respond to a request for comment on the status of the proposed rules. Moolenaar said House Speaker Mike Johnson "would like to have something before the end of the year." Johnson's office did not respond to a request for comment. The United States and other Western countries have imposed sanctions on Chinese officials for human rights abuses in Xinjiang, which the United States has said have amounted to genocide. China rejects allegations of abuses including use of forced labor in Xinjiang, and describes the camps it has set up there as vocational training centers for Uighur Muslims that help combat religious extremism. (Reporting by Alexandra Alper; editing by Mark Heinrich and Kevin Liffey)
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A top U.S. lawmaker emphasizes the urgency of passing legislation to restrict American investment in China, citing national security concerns and the need to protect critical technologies.
Push for Legislation to Limit U.S. Investment in China
A prominent U.S. lawmaker has declared that passing legislation to curb American investment in China is a top priority, highlighting growing concerns over national security and technological competition between the two global powers. The proposed legislation aims to restrict U.S. investments in certain Chinese sectors, particularly those related to critical and emerging technologies 1.
National Security Concerns
The push for this legislation stems from fears that U.S. investments could inadvertently bolster China's military capabilities and economic competitiveness. Lawmakers argue that by investing in Chinese companies involved in sensitive technologies, American capital could be indirectly supporting advancements that may pose threats to U.S. national security interests 2.
Bipartisan Support and Executive Action
The initiative to restrict investments in China has garnered bipartisan support in Congress. This rare alignment of both Democratic and Republican lawmakers underscores the perceived urgency of the issue. Additionally, the Biden administration has already taken executive action to limit U.S. investments in Chinese technology, demonstrating the government's commitment to addressing these concerns 1.
Targeted Sectors and Technologies
While specific details of the proposed legislation are still being finalized, it is expected to focus on investments in advanced semiconductors, artificial intelligence, and other critical technologies. These sectors are viewed as crucial for both economic development and potential military applications, making them a key area of competition between the United States and China 2.
Potential Impact on U.S.-China Relations
The move to restrict investments is likely to further strain the already tense relationship between the United States and China. Chinese officials have consistently opposed such measures, arguing that they represent an unfair attempt to hinder China's economic growth and technological progress. The legislation, if passed, could lead to retaliatory actions from China and potentially escalate economic tensions between the two nations 1.
Challenges and Considerations
As lawmakers work to draft and pass this legislation, they face several challenges. These include defining the scope of restricted investments, ensuring compliance without overly burdening U.S. businesses, and balancing national security concerns with the benefits of international economic cooperation. The legislation will need to be carefully crafted to achieve its intended goals without causing unintended negative consequences for the U.S. economy or global trade relations 2.
Reference
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