Feb. 27, 2023—A new House committee designed to investigate U.S.-China economic relations is set to begin hearings tomorrow. The Select Committee on Chinese Communist Party plans to hear from a human rights advocate, former U.S. national security advisers, and the head of an association for U.S. manufacturing.
The committee hearing comes at a time when U.S.-China economic ties are coming under pressure due to the Russia-Ukraine war, Taiwan, and most recently China’s spy balloon entering U.S. territorial space.
Looking At Business Ties
The heads of the committee, Reps. Mike Gallagher and Raja Krishnamoorthi, plan to examine U.S. corporate, private equity, and venture capital investments in China. Appearing on CBS’s Face the Nation on Sunday, the congressmen said they are reviewing business ties in light of the selective decoupling that is happening.
“We have to safeguard our economy and make sure we are not unwittingly financing genocide or PLA (People’s Liberation Army) modernization,” Gallagher said.
Among the companies they plan to meet with are the NBA and Disney.
“I think we can have a productive conversation with companies that have substantial business interests in China,” Gallagher said. “We want to make sure that the power of the Chinese economy is not seducing certain companies into betraying American values.”
Focused On The Communist Party, Not The People
The congressmen emphasized their concern is with the Chinese Communist Party, not people in China or Chinese Americans.
“At the heart of this committee [is] we do not have a quarrel with the people of China. The differences we have are with the CCP,” Krishnamoorthi said. “The challenge for our committee and indeed our country is how do we continue to engage the People’s Republic of China but at the same time protect ourselves, our values, our interests, our alliances, partners, friends, and others in the Indo-Pacific region.”
Separately, several corporations, including Disney, face shareholder proxy votes calling for more transparency about their business in China.
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