On Thursday’s broadcast of Bloomberg’s “Balance of Power,” Rep. Seth Moulton (D-MA) stated that President Joe Biden’s executive order on investment in China is “a huge step in the right direction.” But there is a “very concerning” loophole that “direct investments in concerning industries are a problem with certain companies, but if subsidiaries of those companies make these investments, there’s nothing wrong with continuing to invest” because conglomerates in China are heavily integrated with their subsidiaries and with the CCP.
Moulton said, “My quick take on it is it’s a huge step in the right direction. But it may not go far enough.”
He added, “I co-chaired a task force on the future of our national security…a couple of years ago. One of the industries that we identified of particular concern is the biotech industry. We’re the world leaders here in Boston, but really, number two is Beijing. And although it’s hard for us to imagine right now, that you could actually manufacture tools for national security through biotech, that’s exactly where this is headed. And so, we’ve got to look carefully at whether we should have restrictions on biotech investing as well. That’s just an example of how we might have to make this yard a little bit bigger.”
Moulton continued, “Now, in terms of the fence being higher, right now, what the executive order says is that direct investments in concerning industries are a problem with certain companies, but if subsidiaries of those companies make these investments, there’s nothing wrong with continuing to invest in sort of the parent company. That’s very concerning to me, because we all know how integrated these conglomerates are in China, not just with their different subsidiaries, but with the Chinese Communist Party. So, this is another area that we’re going to be examining closely in the weeks to come.”
Follow Ian Hanchett on Twitter @IanHanchett
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