Receive free updates on U.S.-China relations
we will send you myFT Daily Digest Email summary of the latest information US-China Relations Every morning there is news.
The U.S. House of Representatives China Committee plans to hold a Taiwan war game with financial and business executives in New York on Monday to raise awareness of the risks of American investment in China.
The committee’s Republican chairman, Mike Gallagher, and Democratic top leader Raja Krishnamoorthi will lead the delegation, according to a person close to the committee.
Participants in the wargame included representatives of investment banks, current and former executives of pharmaceutical companies and retired four-star U.S. military officers. The committee declined to name the finance executives who attended the meeting.
The bipartisan delegation will also meet with other financial executives in New York where the committee will step up scrutiny of U.S. investments in China that could harm U.S. national security.Tuesday they arranged hearing They included testimony from former SEC Chairman Jay Clayton and hedge fund short-seller Jim Chanos.
Lawmakers want to hear from Wall Street executives on “the systemic risks posed by U.S. capital flows to China and how banks and other financial institutions view their investments in China and their exposure to the Chinese economy,” the person said. . political crisis”.
“Our committee must hear from the financial industry on how the policies of the Chinese Communist Party are affecting Americans’ savings and investments, and what Congress needs to do to help protect U.S. investment,” Krishnamothy told the Financial Times. thieves and our national security”, that is very important. .
The wargame will consider the economic impact of a conflict between the United States and China over Taiwan. Lawmakers took part in a Taiwan war game on Capitol Hill in April that raised questions about whether the U.S. and its allies were prepared enough to deal with sanctions against China and tensions with Beijing should it attack Taiwan. economic warfare.
After meeting with Apple CEO Tim Cook and Disney boss Bob Iger earlier this year, Gallagher told the Financial Times that executives in Hollywood and Silicon Valley had underestimated the possibility of a Chinese attack on Taiwan .
A State Department study shared with European countries last year warned that a conflict over Taiwan would trigger an economic shock costing as much as $2.5 trillion a year.
The House China Committee, established in January to focus on potential threats from the Chinese Communist Party, has held hearings on topics including Beijing’s economic aggression and human rights abuses. But in recent months it has investigated business ties between U.S. companies and China.
In August, for example, the committee accused BlackRock and MSCI of undermining U.S. national security by “unwittingly funding” groups developing weapons for the People’s Liberation Army.
Roger Robinson, former chairman of the U.S.-China Economic and Security Review Commission in the U.S. Congress, said the China committee should build on the “visionary investigation” of BlackRock and MSCI.
“As the committee has learned, when you look closely and track the flow of billions of dollars of investor money to CCP-controlled Chinese businesses with the help of reckless Wall Street firms, in many cases there is no What good.”
The heightened congressional scrutiny comes as the White House seeks to reduce the flow of U.S. funding to Chinese technology companies for military applications. U.S. President Joe Biden last month signed an order limiting U.S. investment in China’s quantum computing, advanced chips and artificial intelligence.
Svlook
