From CNBC: 2024-03-20 19:16:10

The U.S. Congress is laser-focused on how American capital has funded China’s military development, pushing for long-term solutions beyond presidential terms. Legislation aims to cut off funds to China’s advanced tech sectors, building on previous acts banning TikTok and revealing U.S. venture capital investments in Chinese companies fueling military and surveillance states.

Despite Senate passing a bill requiring U.S. investors in China’s advanced tech to notify Treasury, House hurdles persist. Biden’s executive order targeted semiconductor, quantum computing, and AI investments, with further legislation proposed to restrict hypersonics and high-performance computing. China calls for fair competition amid criticism of U.S. hindering trade.

Future Union’s research exposes U.S. investments into Chinese companies aiding military advancements, fueling bipartisan concerns of national security risks. Transparency initiatives may require Washington notification on AI and quantum computing investments in China soon. China’s access to advanced semiconductor technology faces U.S. restrictions, impacting investments.

While U.S. institutional investment in China has paused due to regulatory uncertainties, potential market growth post-economic cycle attracts global asset and investment managers. Legislation continues to focus on entities with military ties, sanctions, or export controls, signaling ongoing scrutiny of capital flows into China and implications for American interests.

Read more: TikTok aside, Congress has its eye on the U.S. money going into China