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A bipartisan community of U.S. lawmakers met Tuesday with President Joe Biden to challenge a government order to increase oversight of investments by U.S. organizations and individuals in China and other international locations.
Lawmakers, along with House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, and Republican Senator John Cornyn, advised Biden to submit an order to “take care of our nationwide protection and supply chain resilience in outbound investments against international adversaries.”.
Congress has seen legislation that could provide the U.S. government with sweeping new powers to stem billions in U.S. outbound investments in China. The inspiration has shifted to withdrawing bipartisan legislation to subsidize U.S. semiconductor chip manufacturing and analysis on a bill allowed in August.
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Lawmakers, including Democratic Bill Pascrell, House Appropriations Chair Rosa DeLauro, Senator Bob Casey, and Republicans Brian Fitzpatrick and Victoria Spartz, mentioned in a letter to Biden that, as negotiations progress, “our national security cannot wait.”.
They urged the president to "safeguard the security of the entire country and the resilience of the supply chain against outbound investments from foreign adversaries.".
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In Washington, Liu Pengyu, spokesperson for the Chinese embassy, stated: “The claim that China is harming the interests of workers of Chinese origin is absolutely wrong.”.
The United States “can still maintain the stability of international industry and provide supply chains instead of attacking China from time to time,” the respected source added.
White House national security official Peter Harrell said this month that the Biden administration has not made a final determination on a possible external financing mechanism that regulates U.S. investments in China.
Harrell emphasized that any measures targeting these investments must be tailored to address the gaps in recent US authorities and the specific protectionist risks across the country.
“After surrendering our manufacturing prowess and technological expertise to international adversaries, we are harming our economic system, our global competitiveness, the American people, trade, and national protection. The magnitude of these grave risks we face as a country is immense,” the lawmakers wrote.
The Senate Banking Committee on Thursday will hear about the exit investment, in order to feature testimony from Cornyn, Casey and several former government officials, including insights from Council Vice Chairman Robert Strayer.
The proposed legislation is intended to provide the government with more advantageous visibility into U.S. investments. It would require informing the executive branch about investments that might fall under the new laws, and the U.S. could use the new regulations to halt investments or mitigate risks. If no motion is passed, the funding could proceed.
