US lawmakers to unveil invoice banning funding in companies tied to China’s navy

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United States lawmakers plan to introduce a invoice this week that may hold Americans from investing in international defence firms with ties to China’s navy.

The invoice would require treasury secretary Steve Mnuchin to submit a report back to Congress itemizing international protection firms which have “substantial contracts with, ties to, or support from” the Chinese navy. After that, American firms can be banned from making new investments in these firms.

“On one hand, Congress is asking taxpayers to help grow our military so we can compete with China. On the other hand, large US investment funds are dumping US dollars into China’s military industrial base. We need to end our cognitive dissonance and stop funding the rise of our chief global adversary”, Republican Jim Banks stated.

In April, the White House stated it’ll impose new restrictions on exports to China to maintain sure expertise away from Beijing’s navy. The new rules require licenses for US firms to promote some gadgets to firms in China that assist the navy, even when the merchandise are for civilian use.

US-China tensions continued after China moved to curb Hong Kong’s independence, with secretary of state Mike Pompeo saying that the monetary hub now not qualifies for financial privileges below US legislation.

Last week, the US authorities authorised a laws calling for human rights sanctions on Chinese officers deemed accountable for the oppression of Uyghur Muslims.