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Washington, D.C. – House Foreign Affairs Committee Chairman Michael McCaul issued the below statement following the House Select Committee on the Chinese Communist Party’s report unveiling five U.S. venture-capital firms investing at least $3 billion dollars into China’s military and surveillance capabilities.

“I commend Chairman Gallagher’s investigation highlighting the billions of dollars and intangible benefits U.S. venture capital firms have provided Chinese companies tied to the CCP’s military and human rights abuses. It should come as no surprise that China continues to exploit loopholes in U.S. policy to fuel their war machine and surveillance state. Sanctions did not and cannot solve this problem – that’s why my bill H.R.6349, Preventing Adversaries from Developing Critical Capabilities Act, which would establish a sector-based outbound investment regime, is vital to combatting this problem. It’s clear that U.S. export controls policy is not keeping up with the flow of U.S. dollars to our nation’s greatest adversary and that a new tool is necessary.”

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