Congress To Vote On Tougher Restrictions For U.S. Investment In China

The U.S. Congress is preparing to vote on new legislation that would impose restrictions on U.S. investments in China as part of a broader government funding bill, David Shepardson and Liz Lee reported for Reuters.

The new legislation would expand these restrictions and mandate studies on the security risks of Chinese-made consumer routers and modems.

The bill builds on Treasury rules finalized in October, set to take effect on January 2, which limit U.S. investments in Chinese technology sectors like artificial intelligence (AI) that pose national security risks.

The new legislation would expand these restrictions and mandate studies on the security risks of Chinese-made consumer routers and modems. It also proposes reviews of Chinese real estate purchases near sensitive national security sites.

"China is an economic adversary, and we must take bold action to safeguard our future against the Chinese Communist Party," said Senator Bob Casey, a Democrat.

"This legislation takes decisive steps to restrict U.S. investments and prevent national security technology from falling into adversarial hands."

In response, China’s foreign ministry criticized the measures, saying that creating "artificial obstacles" to normal trade and economic exchanges undermines global industrial and supply chain stability and benefits no one.