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Cracking down on U.S. investment in China is proving to be a tougher nut to crack than many Beijing hawks initially hoped, with American businesses unwilling to give up lucrative deals in a market with more than 1.4 billion people.
Even critics of China’s manipulative trade and economic practices say it is improbable to expect that U.S. companies will simply walk away from the communist giant without alternative markets for investment.
“China’s economy and lending to other countries are too large to be ignored, and there are no good alternatives to the existing international economic framework,” said Clete Willems, who served as deputy director of the national economic council under former President Donald Trump.
Business groups have given similar signals as a suspected Chinese spy balloon was caught traversing the U.S., including hovering near military installations in Montana. The U.S. Chamber of Commerce urged President Biden and Congress last week to strike the right balance to protect national security while not jeopardizing a trade relationship that “supports hundreds of thousands of American jobs.”
But Republicans won control of the House last year by promising to crack down on Beijing. Now in power, GOP lawmakers are proposing a series of punitive measures aimed at China.
Topping the list are new sanctions on companies linked to the Chinese military and the country’s ruling elite. They also offered up legislation requiring the Treasury Department to report on China’s investments within the U.
