US Representative Patrick McHenry, the top Republican on the House Financial Services Committee known for opposing controls on outbound investment to China, will not seek re-election, he announced on Tuesday.
McHenry’s term expires in January 2025.
The 48-year-old North Carolina Republican, who has served in Congress since 2005, stepped in as the House speaker for several weeks after a group of party hardliners pushed out Kevin McCarthy.
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US House Speaker Kevin McCarthy meets Taiwanese President Tsai Ing-wen, despite Beijing’s warnings
US House Speaker Kevin McCarthy meets Taiwanese President Tsai Ing-wen, despite Beijing’s warnings
“While we appreciate the intentions and objectives of Section 1085, the result of this provision would be to strengthen rather than weaken the objectives of Xi Jinping and the Chinese Communist Party,” the letter said.
“To begin with, it is a misconception that US investors are fuelling China’s economic growth,” it said, citing a Rhodium Group report that says US venture capital in China has reached a 10-year low.
Experts urge caution as US plans to screen outbound investment into China
Experts urge caution as US plans to screen outbound investment into China
“Sec. 1085 would have the unintended consequence of limiting Americans’ control, influence and intelligence-gathering in Chinese technology companies.”
Instead, sanctions on defence-sector entities in China would be more effective, the letter writers argued.
“Since China is in no way dependent on capital from US investors, the only way to undermine its military companies is by cutting off revenues and technology, which is the advantage of a sanctions regime.”
The letter was co-signed by all subcommittee chairs in the House Financial Services Committee.
His tenure as chair of the Financial Services Committee is set to end in 2024, as House Republican rules prevent members from serving for more than three consecutive terms as the lead party member on a committee.