New Legislation Aims to Restrict U.S. Investments in China Amid Security Concerns
Congress is set to vote on legislation that restricts U.S. investments in China as part of a bill to fund government operations through mid-March. The bill builds on regulations put into place by the Biden Administration and aims to prevent investments in Chinese technologies that could threaten national security.
The new legislation includes provisions that require the Federal Communications Commission to publish a list of entities that hold FCC licenses and have ownership ties to foreign adversary governments, including China. The bill also mandates reviews of Chinese real estate purchases near national security sensitive sites.
The legislation expands on Treasury rules that took effect in January, which limit U.S. investments in artificial intelligence and other technology sectors in China. The Treasury rules prevent investments in Chinese technologies that could threaten national security, such as cutting-edge code-breaking computer systems or next-generation fighter jets.
Lawmakers have criticized major American index providers for directing billions of dollars from U.S. investors into stocks of Chinese companies that facilitate China’s military development.
Representative Rosa DeLauro, the top Democrat on the House Appropriations Committee, praised the legislation, stating, “This legislation builds on the regulations put into place this year by the Biden Administration, and sets the stage for continued bipartisan efforts to protect and rebuild our critical national capabilities.”