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ICYMI: Rubio Defends Outbound Investment Screening

Dec 7, 2023 | Press Releases

Yes, We Should Restrict U.S. Investment in China

U.S. Senator Marco Rubio (R-FL)

December 7, 2023

National Review

[A] recent investigation reveals that U.S. firm BlackRock is funneling the assets of millions of unwitting Americans into Chinese companies directly backed by Beijing…. A separate report has uncovered similar behavior from Vanguard, the world’s second-largest asset manager….

A first step to a common-sense solution is outbound-investment screening, which would require firms such as BlackRock and Vanguard to notify the U.S. government when they invest in potentially dangerous foreign companies. Earlier this year, the Senate adopted an outbound-investment-screening mechanism into the annual defense bill…. 

Unfortunately, disagreements in the House appear likely to strip this provision from the final bill….

The critics warned that the provision would ultimately backfire because “we want Americans on the boards of Chinese companies spreading Western standards and complying with U.S. laws.” In other words, they still believe that the more money and presence Wall Street has in China, the more China will conform to American values.

The evidence doesn’t support the claim. In fact, the evidence says the opposite. Just look at the lengthy catalog of CEOs who spent $40,000 apiece to dine with Xi Jinping…because they hoped their fawning would win them favorable business prospects….

Companies exist to make money, and if that’s all they want to focus on, that’s their decision. But policy-makers exist to make America strong and keep Americans safe. When we must choose between Wall Street’s profits and the strength and security of the United States…we have every right and duty to prioritize the latter.

Read the rest here.