{"id":2089393,"date":"2023-11-03T17:20:04","date_gmt":"2023-11-03T21:20:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-committee-calls-on-yellen-to-accelerate-investment-restrictions-on-ccp-linked-firms\/"},"modified":"2023-11-03T17:20:50","modified_gmt":"2023-11-03T21:20:50","slug":"house-committee-calls-on-yellen-to-accelerate-investment-restrictions-on-ccp-linked-firms","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-committee-calls-on-yellen-to-accelerate-investment-restrictions-on-ccp-linked-firms\/","title":{"rendered":"House Committee Urges Yellen to Hasten Investment Restrictions on CCP-linked Firms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/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%2Fhouse-committee-calls-on-yellen-to-accelerate-investment-restrictions-on-ccp-linked-firms%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=2089393&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>The House Select Committee Urges Treasury Secretary to Implement Investment Restrictions in China<\/h2>\n<p>The House Select Committee on the Chinese Communist Party (CCP) has called on \u200cTreasury \u200dSecretary Janet Yellen to take action on President Joe Biden&#8217;s executive order regarding outbound U.S. investment restrictions\u200d in key technology areas in China.<\/p>\n<blockquote>\n<p>&#8220;As Treasury deliberates on the definitions and scope to be \u200dissued in these\u200c guidelines, the Chinese\u200d Communist Party (CCP) is developing\u200b advanced technologies, with the help of American capital and know-how,&#8221;\u2062 they said in \u2063the letter, urging Ms. Yellen to \u200bissue rules and guidelines so that \u2062U.S. \u2063firms can be aware\u2062 of what investment restrictions to avoid.<\/p>\n<\/blockquote>\n<p>In August, President\u200c Biden signed an executive \u200dorder banning outbound American investments in key technologies that &#8220;significantly\u2062 advance the military, intelligence, surveillance, or cyber-enabled capabilities of countries of concern.&#8221;<\/p>\n<blockquote>\n<p>The \u200ccommittee recommended the Treasury Department to\u2063 &#8220;adopt a broad definition&#8221; of three restricted sectors as the CCP uses an &#8220;expansive concept of national security&#8221; and &#8220;blurs\u2064 the line between national security and normal commercial matters,&#8221;\u200b as well as evades narrowly defined restrictions. \u2062The committee\u200d noted that it does not recommend exceptions\u2064 as they can weaken the effectiveness \u200dof the measures. It\u200c also seeks maximum penalties for those who violate the \u2064regulations.<\/p>\n<\/blockquote>\n<h3>Cooperation with\u200c Allies and Partners<\/h3>\n<p>In addition,\u200d the committee \u200bsuggested that the United States cooperate with allies and partners to limit the CCP&#8217;s military modernization efforts.<\/p>\n<p>It also\u2063 noted that \u2063the regulations should not just apply\u200c to active investment. Still,\u200b passive investments via public markets, such as mutual \u2064funds or \u2064index funds, should be taken\u2063 into consideration, \u200das many U.S. investments in Chinese tech firms are made\u200c via those types of public funds.<\/p>\n<h2>Preventing \u200dInvestment in the Chinese Military<\/h2>\n<p>The committee has repeatedly sounded the alarm on U.S. firms investing \u2062in \u200dChina&#8217;s technology firms that strengthen the CCP&#8217;s military.<\/p>\n<p>In \u2062July, the panel launched\u200d a probe into four venture capital\u200c firms, accusing them of strengthening the Chinese military via their investment.<\/p>\n<blockquote>\n<p>&#8220;It is likewise using \u2064advancements in quantum \u200dcomputing and semiconductor manufacturing to support the People&#8217;s \u2063Liberation Army (PLA).&#8221;<\/p>\n<\/blockquote>\n<p>The letters also request that the\u2063 leadership of each of the funds answer a series of questions regarding their investments in Chinese companies,\u200d including what companies they are investing in, the dollar amounts of \u2063each investment, their policies concerning investments in \u2062such companies, and what course of action the funds\u2062 would\u200b take \u200cif companies they invested in were sanctioned by the U.S. government.<\/p>\n<p>&#8220;American venture capital and private equity investments in [Chinese] AI, quantum, and semiconductor \u2062companies \u200bdirectly contribute to \u200bthe PRC&#8217;s human rights abuses, military modernization, expansion of authoritarianism around the globe, and the [CCP&#8217;s] \u200boverall effort to supplant U.S. technological leadership,&#8221; the letter\u2063 said, referring to the country\u2019s official \u2063name, the People\u2019s Republic of China.<\/p>\n<h2>Passive Investment<\/h2>\n<p>As mentioned in the letter to Ms. Yellen, the panel wants to address passive investment flow into Chinese firms.<\/p>\n<p>In July, the committee opened an investigation into asset management firm BlackRock\u200b and index provider MSCI, alleging that these firms facilitated passive\u200b investments into blacklisted Chinese companies.<\/p>\n<p>The\u200d investigation revealed that BlackRock had invested over $429 million from five funds\u2064 in such companies.\u2064 The company \u2062manages over $9 trillion in assets and handles investments for millions of Americans.<\/p>\n<p>The committee expands its focus by examining asset managers and index compilers like \u200bBlackRock and MSCI,\u2063 even though they may \u2062not\u2062 directly involve Chinese companies in \u2064their portfolios or indexes. However, according to the panel, their role in directing substantial amounts of Americans&#8217; retirement savings into these companies is considered crucial and a cause for concern.<\/p>\n<p>The Epoch Times has reached out to the Treasury Department for comment.<\/p>\n<p><em>Andrew Thornebrooke contributed to this report.<\/em><\/p>\n<p> <\/p>\n<h2> What potential risks are\u200d associated with U.S. investments in Chinese technology companies \u2064and why is vigilance\u200c and stricter\u2063 regulations necessary to prevent unintended support of the CCP&#8217;s military goals<\/h2>\n<p><span>  Ple&#8217;s Liberation Army&#8217;s\u2062 strategic\u2062 goals,&#8221; \u2062the committee\u200b stated.<\/p>\n<\/blockquote>\n<p>The committee&#8217;s push for \u200dinvestment restrictions stems from \u200dconcerns about the CCP&#8217;s military \u2063modernization efforts and its threats to U.S.\u2062 national security.<\/p>\n<p>By imposing investment restrictions, the U.S. aims to prevent American capital and technology from \u2062being used to advance China&#8217;s military capabilities. \u2063This aligns with President Biden&#8217;s goal\u2064 of competing with China from \u2064a position of\u2062 strength and protecting U.S. technological\u2062 leadership.<\/p>\n<p>The committee&#8217;s recommendation\u200d for a broad \u2064definition of\u2064 restricted sectors reflects the need to encompass all areas that may contribute to the CCP&#8217;s military advancements. \u200dThe \u200bCCP&#8217;s expansive concept of national \u200csecurity necessitates a\u200b comprehensive approach to investment restrictions\u2062 to ensure that no loopholes are exploited.<\/p>\n<p>Cooperation with allies \u200band partners is crucial in addressing the challenge posed by the CCP&#8217;s military modernization. By working together, the U.S. and\u2062 its allies can enhance the effectiveness of investment restrictions\u200b and prevent their circumvention.<\/p>\n<p>Furthermore, the \u200bcommittee&#8217;s emphasis on considering passive investments through public markets recognizes the indirect channels through which American capital \u200cflows into Chinese tech firms. Restricting only active investments would overlook a \u2062significant portion of U.S. funding\u2063 that indirectly \u200csupports the CCP&#8217;s military endeavors.<\/p>\n<p>In investigating venture capital firms accused of aiding \u2062the Chinese military, the committee highlights the \u200cpotential risks associated with U.S. investments in Chinese technology companies. By exposing these instances,\u2063 the committee emphasizes \u2064the\u2063 need for vigilance and stricter regulations \u2062to prevent \u2063further unintended support of the CCP&#8217;s\u200b military goals.<\/p>\n<p>The House Select Committee&#8217;s \u200dletter to Treasury Secretary \u2062Janet\u2064 Yellen serves as a call to \u2062action in implementing investment restrictions in China. It emphasizes the urgency of defining and issuing guidelines that\u200d clearly \u200coutline the \u200csectors and activities\u200b subject to restrictions. By doing so, U.S. firms can make informed decisions and \u2064prevent \u200dinadvertent support\u200b of\u200c the CCP&#8217;s military advancements.<\/p>\n<p>As the U.S. continues to navigate \u2063its complex relationship with China, implementing \u200cinvestment restrictions is an essential step in safeguarding\u200b national security interests. By curbing the flow of American capital and know-how\u2062 to China&#8217;s \u2062military sector, the \u200dU.S. aims to mitigate the risks posed by \u200dthe CCP&#8217;s technological advancements. Through\u2062 proactive measures and international cooperation, the U.S. can \u2062maintain its competitive edge and protect\u200b its\u2062 strategic interests in the\u200d face of evolving global challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The House Select Committee on the CCP has asked the treasury secretary to enforce Biden&#8217;s order on U.S. investment limits in Chinese tech sectors. In a letter to Janet Yellen, Reps. Gallagher and Krishnamoorthi emphasized the importance of this action.<\/p>\n","protected":false},"author":2488,"featured_media":2089394,"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-2089393","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\/2089393","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\/2488"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2089393"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2089393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2089394"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2089393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2089393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2089393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}