Rep. Mike Gallagher (R-Wis.) introduced a new bill in the House on Friday, Nov. 20, that aims to prohibit U.S. capital from being invested in Chinese companies on the Commerce Department’s so-called List of Entities, a list of companies that face U.S. restrictions for various types of national security violations.
During an interview with Fox News, Gallagher said, “We’ve seen that the Chinese Communist Party is engaged in a relentless campaign to dominate critical technologies.’ He added, “As we’ve seen time and again, the CCP exploits our fair and open system in order to dominate those technologies using American capital to finance its malign agenda.”
At the same time, Republican Sens. Marco Rubio from Florida and Mike Braun from Indiana introduced in the Senate on Thursday the version of the bill called the American Financial Markets Integrity and Security Act.
The congressmen expressed their concern arguing that the funding comes not only from large banks and stock market hedge funds, but also from thousands and thousands of Americans whose investments are the product of retirement funds or savings from many years of work.
In most cases, these small savers have no knowledge of where they are depositing their money, and end up involuntarily financing firms that directly affect the economic and social security of the United States.
The bill presented is in line with the executive order signed 10 days ago by President Trump and where Americans were prohibited from investing in a group of 31 Chinese companies that, according to the Department of Commerce, supply and support the Chinese military.
The companies affected include China Telecom, China Mobile and China Unicom, all large firms listed on major stock exchanges.
This new proposed legislation, according to Gallagher, will work as a sort of extension of the executive order signed by President Trump, which was praised by the congressmen.
The U.S. Financial Markets Integrity and Security Act, if passed, will deepen presidential action by prohibiting investments in all Chinese companies involved in the List of Entities.
During the Trump administration, and especially during this last year, many actions have been taken to identify companies in the United States linked to the Chinese Communist Party and its intelligence apparatus, that participate in illegal activities such as information theft, tax evasion, and exploitation of workers in clandestine forced labor centers in China.
President Trump was decisive when he presented his recent executive order, “People’s Republic of China (PRC) is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence, and other security apparatuses, which continues to allow the PRC to directly threaten the United States homeland and United States forces overseas.”