2023-08-03 15:29:29 ET
A House Republican is urging the Biden administration to limit buying Chinese stocks and bonds as part of an executive order the U.S. president is working on to curtail investments in China.
Mike Gallagher (R-WI), chair of the House China Committee, expressed to the White House that the new executive order should cover U.S. participation in public markets, not just direct investments from private equity and venture capital, according to a Financial Times report, which cited a letter the congressman wrote to Biden on Thursday.
"Public market investments represent the majority of US capital flows to the People’s Republic of China," Gallagher wrote in the letter, according to the FT. "Any rules that exempt them will fail to address the bulk of the national security threat."
The executive order is expected to be released by the Biden administration next week, according to the FT.
Bloomberg reported on Friday that Biden was expected to sign the executive order limiting critical US technology investments in China by mid-August. The order is focused on semiconductors, artificial intelligence, and quantum computing, and it won't impact any existing investments.
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House Republican wants Biden to limit US investment in China stocks, bonds - FT