US Congress Stated to Pass Bill Restricting Investments in China

Congress is poised to vote on new legislation in the coming days that will restrict U.S. investments in China as part of a broader bill to fund government operations through mid-March. Lawmakers announced the measure on Tuesday, Dec. 17, signaling continued efforts to address concerns about national security and economic competition with China. 

The legislation builds on Treasury rules finalized in October, which are set to take effect on Jan. 2, limiting U.S. investments in sectors like artificial intelligence and other Chinese technology that could pose national security risks. The new bill not only expands these restrictions but also introduces additional provisions targeting Chinese influence. These include: 

- A requirement to study national security risks posed by Chinese-made consumer routers and modems. 

- Mandating reviews of Chinese real estate purchases near sensitive national security sites. 

Senator Bob Casey, a Democrat, emphasized the importance of the measures, stating, *"China is an economic adversary, and we must take bold action to safeguard our future against the Chinese Communist Party. This legislation takes bold action to restrict U.S. investments to stop our national security technology from getting into the hands of our adversaries before they can use it against us."* 

The bill will also direct the Federal Communications Commission (FCC) to publish a comprehensive list of entities holding FCC licenses or authorizations with any ownership links to foreign adversarial governments, including China. This provision aims to ensure transparency and enhance scrutiny of telecommunications and technology companies connected to foreign adversaries. 

Additionally, Washington is pursuing further measures to restrict Chinese products in other areas: 

- An annual defense bill may ban Chinese companies like DJI and Autel Robotics from selling drones in the U.S. market. 

- The Commerce Department is expected to finalize rules soon that would bar Chinese automakers from selling vehicles in the U.S. and exclude China Telecom from U.S. operations.