Legislation Targets US Investments in China's Technology Sector

In a significant move aimed at safeguarding national security, the US Congress is poised to vote on new legislation that would impose tighter restrictions on American investments in China. This development comes as part of a broader bill to fund government operations through mid-March, according to lawmakers who spoke on December 17.

The proposed bill builds on earlier Treasury Department rules, finalized in October and effective from January 2, which already limit US investments in China's artificial intelligence and other technology sectors deemed a threat to national security. The new legislation expands these restrictions and introduces additional measures addressing broader concerns about China's economic influence.

Among its provisions, the bill mandates a study on the national security risks posed by Chinese-made consumer routers and modems, and requires reviews of Chinese real estate purchases near sites sensitive to national security. Senator Bob Casey, a Democrat, emphasized the need for such bold action to protect the nation's future from what he described as the economic threat posed by the Chinese Communist Party.

The Chinese Embassy in Washington has yet to comment on the pending legislation.