U.S. Lawmakers Seek to Tighten Investment Restrictions on China

Republican chair of the House select committee on China, Representative John Moolenaar, highlighted the priority of restricting U.S. investment in China to prevent funding potential national security threats and alleged human rights abuses. The initiative, facing a challenging path in Congress, gains new scrutiny with recent political developments.

Republican Representative John Moolenaar, chair of the House select committee on China, has announced that the panel's key focus is on introducing legislation to restrict U.S. investments in Chinese businesses. Speaking at the American Enterprise Institute, Moolenaar emphasized the need to prevent supporting Chinese military ventures and alleged human rights abuses against the Uyghur minority in Xinjiang.

The Chinese Embassy in Washington has denounced the proposed measures, accusing the U.S. of overstretching the concept of national security to target Chinese companies unfairly. The embassy vowed to protect the interests of Chinese businesses. This development indicates a potential revival of restrictive investment measures, previously removed from the Chips Act of 2022.

In August 2023, President Joe Biden issued an executive order empowering the Treasury Department to restrict investments in Chinese sectors like semiconductors and AI. However, the implementation rules are still pending. Moolenaar underscored the urgency, aiming to finalize measures by year's end. He also highlighted security risks posed by Chinese firms like ZPMC, which manufacture cranes for U.S. ports. Both ZPMC and the Chinese embassy have yet to respond to recent allegations.

(With inputs from agencies.)