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Chairperson John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party, alongside Rep Andy Barr (R-KY), has introduced new legislation to limit US investments in Chinese sectors that contribute to the Chinese Communist Party's (CCP) military growth, technological advancements, and human rights violations.
The bill, named the Comprehensive Outbound Investment National Security (COINS) Act, seeks to protect American savings and retirement funds while cutting off financial support to sectors critical to China's national security and economy. The COINS Act sets up clear guidelines for US investments, ensuring that Americans' retirement and savings funds will not be channeled to companies in China that contribute to military threats or human rights abuses. Along with the House version, a companion bill has been introduced in the Senate by Senators John Cornyn (R-TX) and Tim Scott (R-SC), with Cornyn being a leading advocate for restricting US investments in China since 2016. Chairman Moolenaar stressed the importance of the bill, stating, "Every American has the right to expect their savings and retirement funds to be invested responsibly, and not be used by the Chinese Communist Party to build weapons that threaten the United States. For the last two years, the Select Committee has articulated a clear red line America must stop the channelling of billions of dollars to Chinese companies blacklisted by the US government for helping the CCP's human rights abuses, strengthening its military, and developing the next generation of national security threats from China." Barr emphasised the need for a strategic response to China's growing ambitions, saying, "This legislation establishes a comprehensive framework to protect American innovation, strengthen national security, and ensure transparency in critical economic and technological sectors. Congress is sending a clear message that the United States will not stand idle in the face of CCP threats." The introduction of the COINS Act follows a series of investigations by the Select Committee into US financial institutions' involvement in investments that contribute to China's military and human rights violations. One year ago, the Select Committee published the Reset, Prevent, Buildeconomic report, which recommended a strategy to address outbound investments in China. This report's findings directly influenced the COINS Act's creation. In one notable investigation, the Select Committee revealed that American venture capital firms had funneled over USD 1.9 billion to Chinese AI companies tied to military modernization and human rights abuses. An additional USD 1.2 billion went into China's semiconductor industry, furthering Beijing's military ambitions. Another investigation found that US asset managers and index providers had allowed the passive investment of more than 6.5 billion dollars into 63 Chinese companies blacklisted by the US government for their role in supporting the CCP's military and human rights violations. The COINS Act represents a significant step in restricting the flow of American capital into sectors that directly undermine US national security, with lawmakers sending a clear message to China that the US will not allow its investments to fuel the growth of the CCP's military capabilities or its human rights abuses. (ANI)
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