A bill that would permit sanctions on certain Chinese entities in China’s defense and surveillance technology sectors was passed by the House Financial Services Committee this week.
The Chinese Military and Surveillance Company Sanctions Act of 2023 (H.R. 760), sponsored by Rep. Andy Barr (R-KY), was approved unanimously by the committee.
Under this proposed legislation, the President would be required to sanction Chinese entities that are crucial to China’s defense and surveillance technology sectors. These comprehensive sanctions would prohibit nearly all economic interactions with blacklisted firms, unlike standard investment restrictions.
“In the face of the CCP’s unambiguous ambitions to reshape the global order, the ‘Chinese Military and Surveillance Company Sanctions Act’ stands as a crucial tool to cut off financing to PRC firms threatening U.S. national security,” Barr said. “This bill targets the very core of China’s military-industrial prowess, ensuring that firms integral to their defense and surveillance capabilities are isolated from the global financial system. In a world with intricate economic ties and challenges, this bill utilizes tested sanctions authorities that are targeted but effective while also providing ‘red light, green light’ clarity to global investors.”
This bill is cosponsored by Reps. Blaine Luetkemeyer (R-MO), Rep. Neal Dunn (R-FL), Rep. Rob Wittman (R-VA), Rep. Ashley Hinson (R-IA), Rep. John Moolenaar (R-MI), Rep. Brad Sherman (D-CA), and Rep. David Scott (D-GA).
“China and Russia have enjoyed relatively unfettered access to U.S. capital markets. Both countries have essentially shrugged off past half-measures and continued operating with near impunity. Mr. Barr’s sanctions represent thoughtful, direct action to hamstring companies involved in these military-industrial complexes and dissuade the global community from funding their atrocities. I am proud to support this impactful legislation,” Luetkemeyer said.
The bill now moves to the full House for consideration.