U.S. Lawmakers Push for Investment Restrictions Citing China's Human Rights Issues

The House select committee on China, led by Republican chair Rep. John Moolenaar, prioritizes legislation to restrict U.S. investment in China. This move aims to prevent funding that could support Chinese military activities or alleged genocide activities, particularly concerning Uighur Muslims in Xinjiang. The initiative revives earlier, unsuccessful efforts in Congress.

On Wednesday, the Republican chair of the House select committee on China emphasized that the panel's top priority is legislation to curb U.S. investment in China, intending to stop American investors from inadvertently financing activities detrimental to U.S. interests. 'We need an outbound investment regime that prevents investment in businesses contributing to the Chinese military and supporting genocide,' stated Rep. John Moolenaar.

Moolenaar clarified that 'genocide' references China's alleged treatment of its Uighur minority in Xinjiang. His comments indicate a potential revival of congressional efforts to restrict U.S. investments in China, which faced setbacks in the past. For instance, investment restrictions were removed from the Chips Act before its enactment in 2022.

In August 2023, President Joe Biden issued an executive order authorizing the Treasury Department to limit U.S. investments in Chinese entities within sectors like semiconductors, quantum information technologies, and certain AI systems. However, the implementation of these rules remains pending. Moolenaar mentioned that House Speaker Mike Johnson aims to finalize something by year-end. The Chinese Embassy and the Treasury Department have yet to comment on these developments.

(With inputs from agencies.)