US lawmakers urge allies to limit investments in popular countries.
Amid speculation that U.S. President Joe Biden will issue an executive order restricting U.S. companies from investing in China as early as the middle of this month in relation to high technology, a proposal has emerged from the U.S. House of Representatives that the U.S. government should demand similar action from its allies.
“If this executive order is to meet the urgency, clarity, and comprehensiveness needed to address the serious national security challenges we face, key principles must be adhered to,” Republican Representative Mike Gallagher, chairman of the House Select Committee on U.S.-China Strategic Competitiveness, wrote in a letter to Biden on April 4.
“The United States should take the lead in formulating and implementing an outbound approach, but consult with allies and partners in advance and urge them to take corresponding restrictions on their investments in China,” he said.
He also recommended including new investments in private and public markets; blocking U.S. capital flows to companies with human rights abuses and ties to China’s military outside of high technology; and establishing predictable investment restrictions instead of case-by-case reviews.
The Biden administration has been considering outbound investment restrictions since shortly after taking office that would limit investment by U.S. companies and others that could help develop China’s high-tech industries.
These reportedly include banning U.S. companies from investing in China in certain sectors related to semiconductors, artificial intelligence (AI), and quantum computers, 카지노사이트넷 and requiring government reporting by U.S. companies making new investments in Chinese high-tech companies.