WASHINGTON (Pakistan Point News / Sputnik - 04th August, 2023) The US House Committee on the Chinese Communist Party has urged President Joe Biden to adopt "effective and balanced" restrictions on outbound investment in China.
Biden is expected to sign an executive order restricting critical US technology investments in China by mid-August, Bloomberg reported last week. In a letter dated August 3, committee chair Mike Gallagher сommended Biden for "taking on the vital issue" but urged him to consider several principles to ensure his order "meets the moment."
"As Congress debates competing approaches � including a so-called 'outbound CIFUS' and the imposition of aggressive sanctions against known PRC military companies � I urge you to take meaningful first steps towards effective and balanced outbound investment rules in the interim," Gallagher said in the letter.
The lawmaker called for a full accounting of total US risk exposure and the final beneficiaries of US investment in China.
First, rules on outbound investment should address both private investments and public market investments, he said.
Second, they should restrict investments in sectors relevant to national security and central to the "Chinese Community Party's technological rise," as well as those linked to alleged forced labor and "genocide," Gallagher continued.
Third, outbound investment rules should safeguard shareholder rights and hold Chinese companies to due diligence standards.
Forth, restrictions should give investors certainty and predictability and not be "burdensome" for the US private sector.
Fifth, allies and partners should be "consulted in advance and persuaded to follow suit with their own parallel restrictions," according to Gallagher.
