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Over the Thanksgiving break, Chairman Gallagher, Sen. Dan Sullivan (R-AK), along with 41 of their colleagues, wrote to leadership of the House and Senate Armed Services Committees last week to recommend strong restrictions on certain U.S. investments to China and other adversarial nations. The lawmakers called for urgent action amidst the increased threat of the Chinese Communist Party weaponizing U.S. capital against the American people. The lawmakers wrote the letter amid negotiations over the annual National Defense Authorization Act (NDAA), demonstrating strong bipartisan support for additional oversight and restrictions on U.S. investments to China.
The bipartisan coalition writes, “There is strong bipartisan consensus in both the U.S. Senate and U.S. House of Representatives that Congress must act to address the national security threat posed by these outbound investments. We have known for some time that U.S. companies are sending capital, intellectual property, and innovation to the PRC, fueling its advance in dual-use critical technology areas. To safeguard our national security, the U.S. needs visibility into our vulnerabilities by requiring, at a minimum, notification of sensitive investments by U.S. firms in these countries.”
Read the full letter below or HERE.
Gallagher, Krishnamoorthi, Stefanik Urge Biden Admin to Investigate PRC Drone Maker Autel
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On Thursday, Chairman Gallagher, Ranking Member Krishnamoorthi, Rep. Elise Stefanik (R-NY), and a host of bipartisan lawmakers. urged the Biden administration to open investigations into Autel Robotics, a People's Republic of China (PRC) drone manufacturer. In a letter to Defense Secretary Lloyd Austin, Treasury Secretary Janet Yellen, and Commerce Secretary Gina Raimondo, the lawmakers unveil that Autel Robotics and its U.S. subsidiary, Autel Robotics USA LLC, maintain deep connections to the Chinese military, known as the People's Liberation Army (PLA).
The bipartisan coalition writes, "Autel is openly affiliated with the People’s Liberation Army (PLA) and poses a direct threat to U.S. national security as local law enforcement and state and local governments are purchasing and operating Autel drones, potentially exposing sensitive data across the country... Autel and its affiliates present themselves as a commercial-oriented business, but Chinese-language web postings reveal that the company is an active PLA supplier, as indicated by Autel job ads recruiting for a military industry sales director, while also publicly working alongside a PLA militia."
View the lawmakers' letter HERE or read below.
Click HERE to view this press release on our website.
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Last Tuesday, Chairman Gallagher and Ranking Member Krishnamoorthi sent a letter to Secretaries Gina Raimondo, Lloyd Austin, and Janet Yellen requesting an investigation of all People’s Republic of China (PRC) Light Detection and Ranging (LiDAR) technology companies to determine whether their activities justify inclusion on three U.S. government-restricted entities lists: the Defense Department’s Chinese Military Companies List, the Commerce Department’s Bureau of Industry and Security Entity List, and the Treasury Department’s Non-SDN Chinese Military-Industrial Complex Companies List.
LiDAR, which is currently not subject to U.S. export controls or government procurement restrictions, is a critical technology used in autonomous systems and robotics. Because the U.S. government currently has no security requirements for the procurement of LiDAR technology, there is significant risk that PRC-made LiDAR technologies are already present in U.S. defense systems and platforms that the U.S. military and its contractors are unaware of.
Read the lawmakers' letter HERE.
Gallagher on Treasury's New EV Guidelines: "Will Increase our Dependence on Communist China"
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On Friday, Chairman Gallagher released the statement below on Treasury's newly released guidelines, that would exempt some critical minerals from rules barring materials from China and other countries deemed a "Foreign Entity of Concern."
“At a time when China is using massive subsidies to undercut US manufacturers and throttle the global market for battery components, Treasury’s naive new regulations would open the floodgates for American tax dollars to flow to Chinese companies complicit in trade violations and forced labor abuses. Instead of securing critical supply chains and protecting vital American industries, Treasury’s rules will sell out American workers and increase our dependence on Communist China. The irony is that this is also terrible news for Chinese workers as the Treasury is all but green-lighting their continued exploitation.”
Gallagher on Reports of Shein's IPO Filing Amid Ongoing Investigation
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On Tuesday, Chairman Gallagher released the below statement following reports that Shein has filed a U.S. IPO while being under an active congressional investigation.
“Shein’s public claims that they take 'visibility across our entire supply chain seriously' is not supported by the materials produced to the committee in its bipartisan investigation. We are continuing to carefully examine Shein’s regulatory and compliance programs, and I would encourage investors and banks underwriting this reported IPO to do the same.”
Gallagher, Green Issue Statement on New DHS Supply Chain Resilience Center
Last Wednesday, Chairman Gallagher and Mark Green (R-TN), Chairman of the House Committee on Homeland Security released the below statement following the Biden administration's announcement to create a Supply Chain Resilience Center within the U.S. Department of Homeland Security.
“Over the last eight months, the Committee on Homeland Security and the Select Committee on the Chinese Communist Party have been investigating critical vulnerabilities at U.S. seaports and exploring potential solutions to mitigate the extraordinary threats posed by the Chinese Communist Party. While we welcome this announcement by DHS—and indeed it shows the department finally acting to meet requirements put in place by the Committee on Homeland Security during the last Congress—we must do more. The threats facing our seaports demand a whole-of-industry change in how we protect our port infrastructure, procure equipment, and ensure the free flow of U.S. goods and services both domestically and abroad. The CCP, in particular, represents an existential threat to U.S. security, and will use every lever of power to gain an advantage over the United States and our partners and allies. DHS must be diligent to ensure their Supply Chain Resilience Center follows through on its mission and does not just become another layer of bureaucracy with once-high ambitions.”
Read for more on threats posed to U.S. ports and the global supply chain:
Congress Seeks Details on Spying Risks From Chinese Cargo Cranes
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