Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook
Congressman John Moolenaar Chairman of the Select Committee on the CCP | Facebook
On December 24, 2024, Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party and Representative Andy Barr (R-KY) introduced legislation aimed at restricting U.S. investments that contribute to the Chinese Communist Party's military, technological development, or human rights abuses.
The Comprehensive Outbound Investment National Security (COINS) Act seeks to establish guidelines to protect American savings and retirement funds while preventing investments in critical sectors of China's military and economy. Senators John Cornyn (R-TX) and Tim Scott (R-SC), incoming chairman of the Senate Banking Committee, have introduced companion legislation in the Senate.
Chairman Moolenaar emphasized, "Every American has the right to expect their savings and retirement funds to be invested responsibly, and not be used by the Chinese Communist Party to build weapons that threaten the United States." He further stated that America must stop channeling billions of dollars to Chinese companies blacklisted by the U.S. government for supporting human rights abuses and military advancements.
Congressman Barr added, "China’s aggressive ambitions and actions require a decisive and strategic response. This legislation establishes a comprehensive framework to protect American innovation, strengthen national security, and ensure transparency in critical economic and technological sectors."
The COINS Act stems from recommendations in a bipartisan report published by the Select Committee one year ago. The report outlined a strategy for restricting problematic outbound capital investments into China, focusing on sanctions, strategic sectors, and public markets.
The Select Committee's investigations revealed significant financial flows from American institutions into China. In February, findings showed over $1.9 billion was directed towards AI companies involved in human rights abuses or military modernization in China. Additionally, $1.2 billion went into China's semiconductor industry.
In April, another investigation found that asset managers and index providers facilitated passive investment of more than $6.5 billion into 63 Chinese companies blacklisted by the U.S. government for advancing military capabilities or supporting human rights abuses.
Alerts Sign-up