Congress Tightens Grip on China Investments

Congress is preparing to vote on new legislation that restricts U.S. investments in China, focusing on AI and other tech sectors posing national security risks. The bill is part of broader measures set to fund government operations through mid-March and tackles concerns about Chinese-made consumer equipment.

Congress is gearing up to cast votes on critical legislation that will impose restrictions on U.S. investments in China. This move, part of a broader bill aimed at funding government operations through mid-March, was announced by lawmakers late on Tuesday.

The new legislation follows October's finalized Treasury rules, set to take effect on Jan. 2, that target U.S. investments in Chinese sectors like artificial intelligence (AI), which are seen as potential threats to national security. The bill seeks to expand these restrictions further.

In addition to the investment limitations, the legislation mandates a study on national security risks posed by Chinese-made consumer routers and modems, highlighting growing concerns over China's influence and technology.

(With inputs from agencies.)