Congress’ Narrow Inquiry into U.S. Investment in China is not a Winning Strategy

Writing in The Washington Times this week, Roslyn Layton examined the current inconsistencies in the United States’ regulatory approach towards curbing investment in Chinese military proxies. As we covered recently, President Biden issued an executive order that would require “U.S. firms to notify the federal government if they invest in some lower-end semiconductor production not already covered by export controls.”  In Congress, the U.S. House Select Committee on the Chinese Communist Party sent letters to financial firms BlackRock and MSCI this month, notifying their CEO’s that the Committee was investing the companies’ investments into certain Chinese companies. The letter states “Americans are now unwittingly funding PRC companies” that develop technologies for the People’s Liberation Army (PLA). Layton notes that this… Read More

Why BIS Should Put Components for Legacy Semiconductors Under Export Controls

By Steve Coonen Last week, Chairman Mike Gallagher of the House Select Committee on the Chinese Communist Party spoke a plain truth: “Every foreign business that enters China takes on a sometimes silent, sometimes not-so-silent business partner: the Chinese Communist Party.” This reality continues to play out in the legacy semiconductor space. The more that American companies are allowed to sell components and manufacturing equipment for legacy chips to China, the more power the CCP will acquire to shape American national and economic security. When it comes to focusing on the danger of advanced or legacy Chinese chips, the U.S. government should reject a false choice of “either/or.” It must embrace a “both/and” concept and act to prevent a looming… Read More

House China Committee: American Businesses Risk Bolstering Chinese Military

The House of Representatives Select Committee on the Chinese Communist Party (CCP) continues to expose how the CCP’s role in China’s economy harms American national security. At a hearing on July 13th, “Risky Business: Growing Peril for American Companies in China,” Chairman Mike Gallagher reinforced what American companies can expect when they do business in China: “Every foreign business that enters China takes on a sometimes silent, sometimes not-so-silent business partner: the Chinese Communist Party.”  Chief among the dangers for American businesses in China, besides massive intellectual property theft, is the fact that the CCP will weaponize American technology against the United States. As Gallagher stated, “China’s Military-Civil Fusion policy means any private company can be effectively turned into an arm of the… Read More