How can we effectively curb China's scientific and technological development?The two parties in the United States blushed over this, and neither came to a conclusion. With this, Biden's plan, which has been brewing for nearly two years, is at risk of collapse.
In the United States, how to limit investment in China is an important issue and a point of contention between the two parties. Recently, members of the U.S. House of Representatives plan to drop restrictions on technology investment in China in the National Defense Authorization Act, which is good news for the business community.
Previously, the Democratic-controlled U.S. Senate passed amendments to the National Defense Authorization Act for Fiscal Year 2024, requiring U.S. companies to report their specific investments in China's semiconductor and other technology fields to relevant departments. The bill aims to prevent U.S. companies from exporting funds and technologies to China's science and technology fields, with the intention of comprehensively curbing China's science and technology development.
However, the amendment's restrictive policy on China did not pass through the Republican-controlled House of Representatives.
McHenry has long argued that broad investment restrictions are contrary to the laws of the economy, and McHenry, the Republican chairman of the House Financial Services Committee, does not approve of the measure. In McHenry's view, investment restrictions should be applied to individual companies, not to overturn a shipwful of people.
McHenry's idea is supported by many Republicans, and even another bill has been enacted within the Republican Party to replace the amendment.
In this regard, some Democratic politicians retorted that if, as McHenry said, one by one, the efficiency would be very low, and it may be that just after sanctioning this company, another company will take its place.
Now it seems that the Republicans, represented by McHenry, do not want the policy to interfere with the normal business order, while the Democratic Party supports the executive order issued by Biden to restrict investment in China, believing that it must be withdrawn from the bottom of the pot to have a restrictive effect.
But the crux of the matter is that whether it is the so-called "precise sanctions" or "salary extraction", whether it can really play a role in curbing the development of China's science and technology industry, there is still a question mark.
Biden has just signed an investment restriction order on China, and the US Congress has been arguing on the back foot, after all, the United States has long begun to impose technological restrictions on China, and China has long been prepared for this. When the United States pushes up the competitive situation, Chinese companies will try their best to avoid policy risks, and first choose to cooperate with companies from other countries, even if they want to cooperate with American companies, they will also make adequate risk plans.
This means that, both in terms of breadth and depth, Chinese companies are slowly moving away from their dependence on American companies. When U.S. companies no longer dominate Chinese companies, the impact of U.S. policies is limited.
Compared with "salary extraction from the bottom of the kettle", "precise sanctions" will do less harm to the United States itself. Therefore, Biden has previously tried the policy of withdrawing wages from the bottom of the kettle, but it has been opposed by the business community.
Not only that, but even the allies of the allies are complaining, believing that Biden's blind adoption of a restrictive policy against China has led to the disorder of the relevant industrial chain. It is also very likely that McHenry will take this as a starting point and try to minimize losses as much as possible on the basis of not changing his stance of "containing China."
U.S. House Speaker Johnson faces a dilemma: how to reconcile different opinions?In fact, not only does McHenry hold important positions and have a strong influence, but the final version of the relevant amendments to the National Defense Authorization Act to restrict investment in China is finalized by the committee, of which McHenry is a member.
In other words, as long as McHenry does not nod his head, then this restriction cannot be finally passed. Or, if House Speaker Johnson veloshes it, the amendment is likely to pass.
In fact, judging from the whole thing, whether it is the Republican Party or the Democratic Party, there is no substantial change in their stance on China, and they both want to curb China's scientific and technological development. And the quarrel between the two over this matter is largely a game between political parties.
On the question of how to contain China, I am afraid that neither party can give an effective answer. And Biden's plan that has been brewing for nearly two years, that is, the executive order to restrict investment in China in the field of semiconductors and other technologies, is still unknown.
In any case, it is ironic that the foreign plan that has been drawn up with great difficulty has become a starting point for the struggle between the two parties.