World

Legislation To Limit US Funding To China: GOP’s Top Priority

The chair of the Republican-led House select committee on China emphasized on Wednesday that the panel’s foremost objective is to legislate restrictions on U.S. investments in China, aimed at preventing American funds from inadvertently supporting adversarial activities.

Outbound Investment Regime Needed

Representative John Moolenaar stated, “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.’” He further remarked, “That’s probably our number one priority right now. We are actually funding our demise.”

A spokesperson for the committee clarified that the term “genocide” refers to China’s alleged treatment of its Uyghur minority in Xinjiang.

READ MORE: Japan Patrolled Taiwan Strait For First Time Amid Regional Concerns

China Responds to U.S. Criticism

In response, the Chinese Embassy in Washington criticized the U.S. for “overstretching the concept of national security and abusing state power to go after Chinese products and companies.” The embassy reaffirmed China’s commitment to safeguarding the legitimate rights of Chinese businesses.

Moolenaar’s statements indicate a potential revival of efforts to implement restrictions on U.S. investments in China, which have faced numerous challenges in Congress.

Legislative Background

Previously, a provision to limit outbound investment was removed from the Chips Act before its 2022 enactment. However, in August 2023, President Joe Biden signed an executive order empowering the Treasury Department to prohibit or restrict U.S. investments in specific Chinese sectors, including semiconductors and artificial intelligence.

While rules to implement this order were proposed in July, they have not yet been finalized, and the Treasury Department did not comment on their status.

Human Rights Sanctions Against China

The U.S. and its allies have imposed sanctions on Chinese officials over human rights abuses in Xinjiang, which the U.S. has characterized as genocide. China has denied these allegations, asserting that the facilities in question are vocational training centers aimed at curbing religious extremism.

Identifying National Security Threats

Moolenaar also highlighted certain Chinese companies that he views as threats to national security. He specifically mentioned Shanghai Zhenhua Heavy Industry Co (ZPMC), a crane manufacturer that was noted in a recent committee report.

He warned that U.S.-bound cranes from ZPMC, which supply 80 percent of the ship-to-shore cranes at U.S. ports, contain unauthorized cellular modems, posing a “significant backdoor security vulnerability.” Moolenaar stressed, “ZPMC could disrupt U.S. maritime equipment and technology at the request of the Chinese government, including during a conflict over Taiwan.” He described the company as a “loaded gun.”

(INCLUDES INNPUTS FROM ONLINE SOURCES)

ALSO READ: Japan’s Ruling Party Gears Up For Leadership Vote

Prateek Levi

Recent Posts

Secrets Revealed: From Flying Reindeer To Gift Delivery, NORAD Explains How Santa Delivers Gifts To Kids

NORAD’s Santa Tracker is back to follow Santa’s Christmas 2024 journey in real time. Track…

6 mins ago

Asaduddin Owaisi Faces Legal Action From Bareilly Court Over ‘Jai Palestine’ Slogan

Owaisi, who took his oath as an MP on June 25, 2024, raised the slogan…

7 mins ago

Manu Bhaker Says, ‘Lapse On My Part’, After Olympic Bronze Medalist Excluded From Khel Ratna Awardees

Manu Bhaker mentioned that the 'lapse' might have been on her part while filing the…

17 mins ago

BPR 2024 : Manu Bhaker Won Two Bronze Medals At The 2024 Summer Olympics

Double Olympic medallist Manu Bhaker, who brought India glory with two bronze medals in shooting…

18 mins ago

Peshawar Court Grants Transit Bail To Pak’s Former President Arif Alvi, His Son

The Peshawar High Court approved transit bail for Pakistan’s former President Arif Alvi and his…

30 mins ago

BPR 2024 : India Began Auctioning Offshore Mineral Mining Blocks For The First Time

In a landmark move to harness the country's offshore mineral wealth, the Indian government has…

34 mins ago