According to reports emanating from Reuters, US lawmakers are introducing a legislation to penalize companies that are investing in firms associated with the Chinese military. This is the latest in a series of acts against China taken by the US.
As per the reports, Representatives Mike Gallagher, Jim Banks, and Doug La Malfa plan to introduce the bill in the House of Representatives. The bill would require the Secretary of Treasury Steve Mnuchin to submit to Congress, a list of companies that have substantial or any ties with the Chinese Military.
After this report has been submitted, American firms and citizens would be given a period of six months to divest from these companies with links to the Chinese military and would be banned from making new investments.
In this regard, Jim Banks said: “On one hand, Congress is asking taxpayers to help grow our military so we can compete with China. On the other hand, large US investment funds are dumping US dollars into China’s military-industrial base”.
He added: “ we need to end our cognitive dissonance and stop funding the rise of our chief global adversary”.
President Donald Trump has kept up the pressure on China and blamed it for a series of negligent acts that have ensured the spread of the coronavirus which has wreaked havoc across the world.