House committee targets crackdown on U.S. financial investment in Chinese tech

China war games: Select committee members discuss risks from war over Taiwan

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WASHINGTON– Members of a bipartisan House committee analyzing financial competitors in between the U.S. and China stated Tuesday that Congress requires to enact laws barriers for American financial investment in Chinese business, consisting of expert system.

“It is up to Congress to ensure American money isn’t financing the CCP’s top tech ambitions, including AI, quantum computing, and semiconductors, but also biotechnologies, directed energy, hypersonics, advanced manufacturing, space technologies … anything associated with the PRC’s military-industrial complex,” statedRep Mike Gallagher, chairman of the House Select Committee on the Chinese Communist Party.

Gallagher, R-Wisc, stated throughout the hearing that American business continuing to purchase blacklisted Chinese companies are assisting to money the Chinese federal government’s push to attack Taiwan.

Government staff member pension funds are likewise at play.Rep Raja Krishnamoorthi, D-Ill, ranking member of the committee, mentioned a May Newsweek report mentioning that a minimum of 115 shared funds used under the federal government’s Thrift Savings Plan consist of several of 30 approved or watch-listed Chinese business that threaten nationwide security.

“By investing in these companies we risk supporting the CCP’s military aggression and their human rights abuses,” Krishnamoorthi stated.

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“If the Chinese Communist Party moves on Taiwan, it would lead to a catastrophic war, a global depression and tens of thousands of lives being lost on all sides,” Krishnamoorthi informed CNBC’s “Squawk Box” onTuesday “That’s something we have to prevent.”

But Gallagher stated that Wall Street companies have actually not seriously thought about the hazards postured by the People’s Republic of China, consisting of threats to the U.S. economy, if the PRC prepares to attack its next-door neighbor.

“What is Wall Street doing to guard against that outcome?” Gallagher stated at the hearingTuesday “Are banks and asset managers moving to protect American investors? Or are they just betting on another bailout?”

At least one Wall Street company, JPMorgan Chase, is worried about stretched relations with China, according to CEO Jamie Dimon.

“I don’t expect a war in Taiwan, but this can go south,” Dimon stated Monday at a monetary conference in NewYork Prospects for JPMorgan operations in China are looking less positive amidst unpredictabilities in IPO and merger markets, he included.