U.S. House Speaker Johnson has rejected bipartisan efforts to use a must-pass defense bill to tighten restrictions on U.S. investment in China’s technology sector and has tasked several of his committee chairs to resolve their differences on the issue early next year, according to people familiar with the matter.
Bloomberg reported that Johnson’s decision dealt a serious blow to efforts aimed at requiring companies to notify the government of certain investments they make in places such as China. The language, supported by both Democrats and Republicans, is in line with President Joe Biden’s executive order aimed at restricting U.S. companies’ investment in China’s high-tech sectors.
The so-called overseas investment issue pitted House Financial Services Committee Chairman Patrick McHenry, who opposed the language, against Foreign Affairs Committee Chairman Michael McCaul, and China Special Committee Chairman Mike Gallagher. Contradictions have led to rifts within the Republican Party on the China issue.
