Corrected 1:18 p.m. | Even as Washington takes a hard line on keeping U.S. technology and data beyond China’s reach, the federal government has thus far been slow to close another channel of technology assistance: potentially billions of dollars in U.S. investment in Chinese tech startup companies.
Lawmakers stepped into the issue last year, using the fiscal 2023 omnibus spending bill to direct the Treasury and Commerce departments to find a mechanism to track U.S. capital flows into tech sectors in China and other countries. Lawmakers and administration officials say the move is essential to curbing China’s tech ambitions.
“There is a fundamental contradiction in our China policy today: the U.S. government is placing increasing scrutiny on technology transfer and tightening export controls in concert with our allies to counter malign CCP-directed companies,” said Rep. Mike Gallagher, R-Wis., the chairman of the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party.
