{"id":2029989,"date":"2023-09-12T22:16:01","date_gmt":"2023-09-13T02:16:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-execs-recognize-need-to-restrict-flow-of-us-capital-to-china-gallagher\/"},"modified":"2023-09-12T22:19:38","modified_gmt":"2023-09-13T02:19:38","slug":"wall-street-execs-recognize-need-to-restrict-flow-of-us-capital-to-china-gallagher","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-execs-recognize-need-to-restrict-flow-of-us-capital-to-china-gallagher\/","title":{"rendered":"Wall Street Execs Acknowledge Urgency to Limit US Capital Flow to China: Gallagher"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwall-street-execs-recognize-need-to-restrict-flow-of-us-capital-to-china-gallagher%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2029989&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Wall Street Leaders Express Willingness to Pull Back Investment from China<\/h2>\n<p>According to House China Committee Chairman Rep. Mike Gallagher (R-Wis.), Wall \u200dStreet leaders \u200bhave shown a general willingness to reduce investment in China. During a tabletop exercise in New York, Mr. Gallagher and seven other committee members engaged with top Wall Street figures to explore the implications of an economic competition with the Chinese Communist Party (CCP) over Taiwan.<\/p>\n<p>Mr. Gallagher was surprised to\u2063 find that even\u2063 executives who are \u2063typically\u200b more \u2062lenient towards China \u2062recognized the \u2064need for restrictions on US \u2063capital flowing into certain areas of China.\u200d He stated, &#8220;So nobody was pushing back against the principle. It&#8217;s just a question of how you get it right\u2014like \u200cwhat&#8217;s \u200bthe best way to regulate it.&#8221; This recognition among Wall Street leaders is encouraging.<\/p>\n<h3>Scope of Restrictions<\/h3>\n<p>President Joe Biden signed an executive order in August to regulate outbound investment tied to China, specifically in sensitive technologies such as artificial intelligence, quantum technology, and semiconductors. However, \u200dMr. Gallagher believes that the\u200b scope of these restrictions can be much broader. \u200dHe suggests including &#8220;anything associated with the [China&#8217;s] military-industrial complex,&#8221; such \u200cas space technologies, hypersonics, and biotechnology.<\/p>\n<p>Mr. Gallagher is confident that\u2064 legislation can be enacted to go beyond the Biden executive order and endure beyond the \u200ccurrent administration. He emphasized\u200d the \u2062importance of not funding the CCP&#8217;s military ambitions, as it increases the \u2062likelihood of conflict in the Indo-Pacific region.<\/p>\n<h3>Potential Consequences<\/h3>\n<p>Mr. Gallagher warned that if China were to\u200b invade Taiwan, the impact on U.S. financial systems would be \u2062catastrophic. He stated, &#8220;The entire U.S. economy and banking system would be imperiled. Equity markets would drop precipitously as global shipping lanes closed, shipping\u200b insurance premiums skyrocketed, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/united-states-fails-to-stop-chinese-invasion-of-taiwan-in-congressional-war-simulation\/\" title=\"United States Fails to Stop Chinese Invasion of Taiwan in Congressional War Simulation\">supply chains broke<\/a> down, and the specter \u2063of global \u2063conflict grew. \u2063Americans would see their pensions shrink and their bank accounts hemorrhage cash.&#8221;<\/p>\n<p>However, Mr. Gallagher&#8217;s focus extends beyond the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uk-may-ease-ccp-virus-lockdown-from-march-foreign-secretary-says\/\" title=\"UK May Ease CCP Virus Lockdown From March, Foreign Secretary Says\">worst-case scenario<\/a> of a Taiwan invasion. He aims to engage with Wall Street executives to address the increasingly hostile business climate in \u2062China.\u200d The risks associated with doing business in China have risen significantly, with routine commercial activities being labeled as &#8220;state secrets&#8221;\u200c under a new <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/volkswagen-faces-fresh-investor-doubts-on-independence-of-planned-xinjiang-audit\/\" title=\"Investor doubts resurface over Volkswagen's Xinjiang audit independence.\">anti-espionage law<\/a>. U.S. consulting firms have been raided, and bilateral\u2064 tensions with the\u200d United States continue to escalate.<\/p>\n<h3>Waking Up to the Risks<\/h3>\n<p>Mr. Gallagher believes that people\u200c are starting to recognize the\u2062 risks associated with investing in China. U.S. hedge funds, including Coatue, D1 Capital, and\u2063 Tiger Global, \u200dhave reduced their exposure to the Chinese market. \u200bA poll of Fortune 500 CEOs conducted in May revealed that 41 percent are decreasing investment in China due to \u200dpolitical and reputational risks.<\/p>\n<p>BlackRock, the world&#8217;s first global asset manager to establish a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-execs-recognize-need-to-restrict-flow-of-us-capital-to-china-gallagher\/\" title=\"Wall Street Execs Acknowledge Urgency to Limit US Capital Flow to China: Gallagher\">wholly owned onshore mutual fund<\/a> in China, recently closed a China-focused fund following a probe from the China committee over its investment ties with blacklisted firms.<\/p>\n<p>In his testimony to the Select Committee on the CCP, former chairman of the U.S. securities regulator Jay Clayton \u2064proposed that companies\u2064 disclose their China risk if\u200c they meet\u200c certain criteria, such\u2064 as \u2063having a market\u200d capitalization exceeding $50 billion\u200b or a China-based cost \u200cor revenue of over $10 billion \u200cannually.<\/p>\n<p>Mr. Gallagher concludes that taking on a genocidal, communist regime as a business partner is not a recipe for success but rather a source of systemic risk. He \u2063believes that selective decoupling from\u200b China is inevitable and that more\u200b individuals and organizations \u2063are waking up to the\u200d risks involved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>discuss the potential withdrawal of investments from China. Wall Street leaders, as per Rep. Gallagher, displayed a collective openness towards this idea. During their visit to New York, Mr. Gallagher and his committee engaged in a tabletop exercise with prominent figures from the financial hub to explore this possibility.<\/p>\n","protected":false},"author":361,"featured_media":2029990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2029989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2029989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/361"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2029989"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2029989\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2029990"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2029989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2029989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2029989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}