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US Congress drops China investment curbs from defense bill

Dec 9, 2024, 6:54am EST
politicsNorth America
House Democratic leader Rep. Hakeem Jefferies, D-N.Y.
House Democratic leader Hakeem Jeffries. Piroschka van de Wouw/File Photo/Reuters
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House Democrats derailed a bipartisan push to attach language to the annual defense policy bill to restrict US investment in China at the 11th hour.

House Democratic leader Hakeem Jeffries prevented the language from being attached to the 2025 National Defense Authorization Act, text of which was released over the weekend.

The outbound proposal, backed by House Speaker Mike Johnson and Senate Majority Leader Chuck Schumer and eyed warily by Wall Street, would have essentially codified a Biden administration executive order restricting US investment in certain high-tech sectors in China.

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Johnson, who has been working for months to settle an internal Republican disagreement over the policy, is expected to attempt to attach it to the year-end continuing resolution — but that may prove difficult.

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