House Foreign Affairs Committee Chairman Michael McCaul says Congress needs to tighten restrictions on US firms’ investment in China beyond those proposed by President Joe Biden earlier this summer, as recent breakthroughs in Chinese technology have spurred debate over the effectiveness of Washington’s controls.
The Texas Republican sees a path forward that builds on two legislative efforts: imposing sanctions against individual Chinese firms and curbing spending on a sector-wide basis.
The first is a House bill that would require the president to slap sanctions on companies involved in China’s defence or surveillance efforts. McCaul also wants to strengthen a Senate-passed measure that now only requires firms to notify the government about investments in China’s hi-tech sectors, including semiconductors, artificial intelligence and quantum computing.
Where did Huawei get the advanced chips for its latest Mate 60 Pro smartphone?
Where did Huawei get the advanced chips for its latest Mate 60 Pro smartphone?
“I think we can go down that list, sector by sector, and prohibit the sale rather than just notification,” McCaul said at the Texas Tribune festival. “Put the sanctions piece in, and then we got a really strong countering-China bill.”
“I’m tired of seeing our technology ripped off and being used in their weapons,” he said.
His comments come after Shenzhen-based Huawei Technologies Co. showed it has been able to partially overcome US sanctions and make tech breakthroughs.
Huawei’s progress have led some to question whether a US-led global technology blockade targeted at China’s chip sector has failed, with McCaul and other Republican lawmakers calling for the Biden administration to completely cut off Huawei and SMIC from American suppliers.