US lawmakers move to restrict investment in China citing security concerns

House Select Committee on the Chinese Communist Party Chairperson John Moolenaar (R-MI), along with Representative Andy Barr (R-KY), introduced new legislation to limit US investment in Chinese sectors that contribute to the Chinese Communist Party (CCP). Have presented. Military development, technological progress and human rights violations.

The bill, called the Comprehensive Outbound Investment National Security (COINS) Act, seeks to protect American savings and retirement funds while cutting financial aid to sectors critical to China’s national security and economy.

The COINS Act establishes clear guidelines for US investments, ensuring that Americans’ retirement and savings funds will not be channeled into Chinese companies that contribute to military threats or human rights abuses. Along with the House version, a companion bill has been introduced in the Senate by Senators John Cornyn (R-TX) and Tim Scott (R-SC), Cornyn has been a leading advocate for restricting US investment in China since 2016.

Chairman Moolenaar emphasized the importance of the bill, saying, “Every American has the right to expect that their savings and retirement funds will be invested responsibly, and the Chinese Communist Party’s efforts to create weapons that threaten the United States. It will not be used for. For the past two years, the Select Committee has expressed a clear red line that the US should send billions of dollars to Chinese companies blacklisted by the US government to help the CCP stop its human rights abuses, strengthen its military, and develop the next generation. Will have to stop giving money. “National security threat from China.”

Barr stressed the need for a strategic response to China’s growing ambitions, saying, “This legislation establishes a comprehensive framework to protect American innovation, strengthen national security, and ensure transparency in critical economic and technology sectors. ” Congress is sending a clear message that the United States will not stand idle in the face of CCP threats.

The introduction of the COINS Act follows a series of investigations by the Select Committee into the involvement of US financial institutions in investments that contribute to China’s military and human rights abuses. A year ago, the Select Committee published the Reset, Prevent, BuildEconomic report, which recommended a strategy to address outbound investment in China. The findings of this report directly influenced the creation of the COINS Act.

In a notable investigation, the Select Committee revealed that US venture capital firms had funneled more than US$1.9 billion to Chinese AI companies linked to military modernization and human rights abuses. An additional US$1.2 billion was invested in China’s semiconductor industry, furthering Beijing’s military ambitions.

Another investigation found that US asset managers and index providers had allowed passive investments of more than $6.5 billion in 63 Chinese companies blacklisted by the US government for their role in supporting the CCP’s military and human rights abuses .

The COINS Act represents an important step in restricting the flow of US capital to sectors that directly undermine US national security, with lawmakers sending a clear message to China that the US should not limit its investments to the CCP’s military capabilities or Will not allow to promote its development. Violation of human rights.