Congress to vote on new restrictions on US investment in China (updated)

China Telecom

18/12/2024 02:09

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      Congress to vote on restricting U.S. investments in China
    

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      Bill includes studying risks of Chinese-made routers and
modems
    

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      FCC to list entities with foreign adversarial government
ownership
    

  
 (Adds additional Senator comment, more efforts by the US to
restrict Chinese products paragraphs 4-7)
    By David Shepardson
       WASHINGTON, Dec 17 (Reuters) - Congress is set to vote
in the coming days on legislation restricting U.S. investments
in China as part of a bill to fund government operations through
mid-March, lawmakers said late on Tuesday.
    In October, the Treasury finalized rules effective Jan. 2
that will limit U.S. investments in artificial intelligence and
other technology sectors in China that could threaten U.S.
national security.
    The bill expands on those restrictions and also includes
other provisions aimed at concerns about China, including a
requirement to study national security risks posed by
Chinese-made consumer routers and modems and mandate reviews of
Chinese real estate purchases near additional national security
sensitive 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 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 Chinese Embassy in Washington did not immediately
comment.
    The bill will also require the Federal Communications
Commission to publish a list of every entity that both holds an
FCC license or authorization and has any ownership by foreign
adversarial governments, including China to ensure the
commission "knows when telecommunications and technology
companies have a connection and foreign adversary."
    Washington is moving on a number of fronts to further
restrict Chinese products.
    An annual defense bill could ban China-based DJI and Autel
Robotics from selling new drones in the United States market,
while the Commerce Department is working to finalize rules in
the coming weeks that would bar Chinese automakers from selling
vehicles in the United States and bar China Telecom  601728.SS 
from U.S. operations.
    Lawmakers have criticized major American index providers for
directing billions of dollars from U.S. investors into stocks of
Chinese companies that the U.S. believes are facilitating the
development of China’s military.
    The Treasury rules and legislation cover semiconductors and
microelectronics, quantum information technologies and certain
AI systems aimed at preventing investments in Chinese
technologies like cutting-edge code-breaking computer systems or
next-generation fighter jets.
    Representative Rosa DeLauro, the top Democrat on the House
Appropriations Committee, said "for years I have watched
American dollars and intellectual property fuel the Chinese
Community Party's technology and capabilities... This
legislation builds on the regulations put into place this year
by the Biden Administration, and sets the stage for continued
bipartisan efforts to protect and rebuild our critical national
capabilities."
    The outbound legislation covers technologies listed in the
Treasury order and adds additional AI models that use some
semiconductors, AI systems designed for exclusive military or
government surveillance end use, hypersonic systems and
additional export-controlled technologies.



 (Reporting by David Shepardson; Editing by Sonali Paul and
Michael Perry)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))