House Committee Proposes U.S. Investment Restrictions in China

Republican Representative John Moolenaar, chair of the House select committee on China, has prioritized legislation to restrict U.S. investments in Chinese businesses, citing concerns over national security and human rights abuses against the Uyghur minority in Xinjiang. Moolenaar emphasized the need for an outbound investment regime that would prohibit funding for companies linked to the Chinese military or genocide. The Chinese Embassy in Washington condemned these efforts, asserting that China would protect its businesses against unfair targeting. This legislative push follows President Biden's August 2023 executive order granting the Treasury Department authority to limit investments in critical sectors like semiconductors and AI, although implementation rules are still pending. Moolenaar indicated that House Speaker Mike Johnson aims to finalize measures by the end of the year, signaling a potential revival of previously stalled investment restrictions. The situation reflects ongoing tensions between the U.S. and China, especially regarding human rights issues in Xinjiang, which China denies.