Millions of Americans are unknowingly supporting the Chinese Communist Party (CCP) and China’s People’s Liberation Army (PLA) through corporate giants, such as Morgan Stanley Capital International (MSCI) and BlackRock, funneling U.S. taxpayer dollars to companies working on behalf of the Chinese government, according to Representative and Chair of the House Committee on the Chinese Communist Party, Mike Gallagher (R-Wi).
Corporates like BlackRock have moved U.S. dollars to Chinese companies that, among other things, produce the CCP’s military aircraft, aircraft carriers, aerospace technology, artillery shells, and advanced nuclear technology.
The Biden government recently issued an executive order entitled “Executive Order on Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern,” which sought to limit American investment in Chinese-owned companies. Rep. Gallagher argues, although a step in the right direction, it does not go far enough to resolve the challenge.
He suggests the U.S. should push to implement a number of other restrictions on companies investing in China, including banning investments that support and modernize the LPA or forced labor and Uyghur Genocide, addressing all public and private capital outflows that end up in China, delisting and de-indexing Chinese companies supporting the LPA, and guaranteeing the stability of the American financial system.
“We are quite literally funding our own potential destruction – and the executive order, while well-intentioned, won’t stop it. It is up to Congress to erect strong, enduring guardrails around outbound investment in China,” argues Gallagher.
