China policy is one of the few areas of bipartisan concern and collaboration. The commission’s recommendation for outbound investment review closely tracks legislation co-sponsored by Sens. Bob Casey, a Pennsylvania Democrat, and John Cornyn, Republican of Texas. They are trying to attach their bill to the must-pass National Defense Authorization Act.
That maneuver was tried by Sen. Chuck Schumer, to get the bipartisan U.S. Innovation and Competition Act through Congress. The bill passed the Senate but is bottled up in the House, where Speaker Nancy Pelosi, as an alternative to tacking it onto the Defense Authorization Act, has now agreed to put the measure to a separate vote.
The one thing missing from Schumer’s bill is controls on U.S. private investment in China, whether direct or via stock purchases. Delisting stocks or banning investment outright in a variety of vehicles controlled directly or indirectly by the Chinese state and Communist Party would be a sign that the U.S. is getting both serious and strategic.