WASHINGTON: The US Congress is set to vote in the coming days on legislation restricting US investments in China as part of a bill to fund government operations through mid-March, lawmakers said late on Tuesday.

In October, the Treasury finalised rules effective Jan 2 that will limit US investments in artificial intelligence and other technology sectors in China that could threaten US 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 US investments to stop our national security technology from getting into the hands of our adversaries before they can use it against us.” The Chinese foreign ministry said the setting up of “artificial obstacles” to normal economic and trade exchanges disrupts the stability of global industrial and supply chains and was not in any party’s interest. Spokesperson Lin Jian told reporters that China urges relevant US politicians to stop politicising and weaponising economic and trade issues, and instead create the necessary conditions for economic and trade cooperation between the two countries.

The bill will also require the US 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.”

Published in Dawn, December 19th, 2024