Congressman introduces Fight China Act to limit US investments in Chinese military firms

In a pivotal government meeting on April 9, 2025, lawmakers discussed the urgent need for legislation to protect American retirees from financial exploitation by the Chinese Communist Party (CCP). The meeting centered around the Fight China Act, introduced to prevent U.S. investments in Chinese military and surveillance companies, aligning with President Trump's America First Investment Policy.

The Fight China Act aims to address the growing concern over outbound investments that may inadvertently fund the CCP's military and technological advancements. Lawmakers emphasized the importance of a dual approach—targeting both specific entities and broader technology sectors that pose national security risks. This comprehensive strategy is crucial, as many investments flow into private, non-listed entities that could still contribute to military fusion efforts.

Witnesses at the meeting highlighted the challenges faced by U.S. firms in navigating existing government prohibitions on Chinese entities. They stressed the need for clearer guidelines to ease compliance burdens, allowing companies to seek pre-approval for significant investments without incurring unnecessary legal costs. This "red light, green light" system would provide clarity and protect American investors from inadvertently supporting adversarial activities.

Concerns were also raised about the passive investment loophole, where U.S. mutual funds and exchange-traded funds have substantial investments in Chinese stocks and bonds. Lawmakers argued that the Fight China Act must include strict prohibitions to prevent American capital from financing the CCP's military and surveillance operations, which have been linked to human rights abuses.

Congresswoman Brown, representing Ohio's Eleventh District, underscored the urgency of the issue, emphasizing the need to safeguard the savings of seniors and retirees who have worked hard to secure their financial futures. The discussions from this meeting signal a significant step towards protecting American investors and reinforcing national security against foreign threats. As the Fight China Act progresses, its implications for both the economy and national security will be closely monitored by stakeholders across the nation.