Bipartisan Group Moves to Restrict Chinese Investments

( – A group of more than 40 lawmakers from both major US political parties are uniting to demand that Congress tighten restrictions on foreign investments in China while under the rule of the Chinese Communist Party (CCP), which they claim could potentially undermine national security by benefiting the Chinese military.

A total of 41 lawmakers, including representatives and senators from both the Democratic and Republican Parties, composed a bipartisan letter to the Armed Services Committee this week calling for stronger restrictions on outbound investments in Chinese businesses and industry. The defense policy bill also calls for similar restrictions on other nations that aren’t formally allied with the US.

The armed services panels for the House and Senate are currently conducting annual negotiations for the National Defense Authorization Act (NDAA), a controversial Bush-era legislation determining national security and defense policies and outlining levels of defense spending.

The lawmakers wrote that they are “deeply concerned” that “outbound capital flows and knowledge transfer” to adversaries of the US could be a “potential” threat to national security, specifically the People’s Republic of China. They urged Congress “to ensure” that the NDAA of 2024 includes “language addressing” these investments in “countries of concern.” Such language, they conclude, should be “ideally” strengthened.

The lawmakers state that they’ve “known for some time” that American companies are sending money, “intellectual property,” as well as “innovation” to China, which they claim is helping to fuel the nation’s “advance in dual-use critical technology” that benefits the Chinese military and puts the US at greater risk. The solution they propose to access the “vulnerabilities” of the US is to, at least, require “notification of sensitive investments” by American firms.

Two leaders and ten additional members of the bipartisan Select Committee on the Chinese Community Party signed the letter. Other signatories include Chair of the House Foreign Affairs Committee, GOP Rep. Michael McCaul of Texas, and Democratic Rep. Gregory Meeks of New York. Nineteen senators in total also signed the document.

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