Congress to vote on new restrictions on US investment in China

The bill will also require the Federal Communications Commission to publish a list of every entity that both holds an FCC license or authorisation 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 defence 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 from US operations.

Lawmakers have criticised major American index providers for directing billions of dollars from US investors into stocks of Chinese companies that the US 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.