Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
On December 24, 2024, Congressman Andy Barr and Chairman John Moolenaar introduced a bill aimed at restricting U.S. investments that contribute to the Chinese Communist Party's military and technological advancements or human rights abuses. The legislation, known as the Comprehensive Outbound Investment National Security (COINS) Act, seeks to establish guidelines to protect American savings while preventing investment in critical sectors of China's military and economy.
Senators John Cornyn and Tim Scott have introduced companion legislation in the Senate. Cornyn has been advocating for restrictions on outbound investments to China since 2016. "China’s aggressive ambitions and actions require a decisive and strategic response," stated Congressman Barr. He emphasized that the legislation aims to protect American innovation, enhance national security, and ensure transparency in vital economic sectors.
Chairman Moolenaar highlighted the importance of responsible investment of American savings, stating that funds should not be used by the Chinese Communist Party to build weapons threatening the United States. Over the past two years, his committee has emphasized stopping billions of dollars from being channeled to Chinese companies blacklisted by the U.S. government for their involvement in human rights abuses and military enhancements.
The Select Committee's previous reports have laid the groundwork for this legislative effort. Their findings revealed significant U.S. venture capital investments in China that support its military modernization and human rights abuses. Investigations found over $1.9 billion invested in AI companies aiding China's human rights violations or military efforts, with an additional $1.2 billion going into its semiconductor industry.
Another investigation reported that passive investments facilitated by asset managers resulted in more than $6.5 billion being invested into 63 Chinese companies blacklisted by the U.S., furthering China's military capabilities or supporting its human rights abuses.
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