WASHINGTON — The Coalition for a Prosperous America (CPA) today criticized the U.S. House of Representatives for missing a critical opportunity to address the significant threats China poses to American workers and domestic producers. Despite the buildup to “China Week,” House leadership failed to include several key legislative measures that would meaningfully counter China’s malign influence on U.S. trade, capital markets, and manufacturing.
Earlier this year, CPA released a list of legislation it endorses to restrict U.S. capital flows to China, prohibit Chinese companies from receiving federal funds and tax credits, revoke China’s Most Favored Nation (MFN) status, and close the de minimis loophole.
“It’s disappointing that House leadership excluded essential bipartisan legislation to address the serious risks China poses to U.S. workers and manufacturers,” said Zach Mottl, Chairman of CPA. “By leaving out bills that would prevent Chinese companies from accessing Inflation Reduction Act tax credits, restrict U.S. capital from flowing into China, and close the de minimis loophole, the House is missing a critical opportunity for meaningful action.”
According to a CPA economic analysis, Chinese companies could gain over $125 billion in taxpayer-funded Inflation Reduction Act (IRA) credits. CPA supports bipartisan legislation introduced in July by Senators Sherrod Brown (D-OH), Bill Cassidy (R-LA), Jon Ossoff (D-GA), and Rick Scott (R-FL) that would prevent Chinese companies from receiving IRA 45X tax credits. CPA also supports similar legislation introduced by U.S. Senator Marco Rubio (R-FL) and U.S. Representative Carol Miller (WV). The House’s failure to act on similar legislation sends a troubling signal that more must be done to stop U.S. tax dollars from subsidizing foreign adversaries.
Additionally, key measures aimed at restricting U.S. outbound investment to China—especially in sectors critical to national security—and preventing China from exploiting U.S. capital markets were omitted from the agenda. Wall Street continues to help fund Chinese companies, further entrenching their dominance in vital industries and contributing to China’s military modernization. Roger Robinson Jr., a CPA advisor and former National Security Council Senior Director, recently detailed these threats in an interview with Maria Bartiromo.
CPA also supports bills introduced by Senator Rick Scott (R-FL) to curb Wall Street’s investments in China, as well as a bipartisan legislative package introduced by Congresswoman Victoria Spartz (R-IN-05) and Congressman Brad Sherman (D-CA-32). These efforts follow CPA’s reports to Congress detailing how major Wall Street firms like Vanguard, BlackRock, and MSCI are channeling U.S. retirement and investment funds into Chinese companies, including those involved in military operations and human rights abuses.
- CPA Report Details How Vanguard and FTSE Russell Funnel Billions of U.S. Investor Capital to the CCP and PLA -Linked Companies
- CPA Report Details How BlackRock And MSCI Funnel Billions of U.S. Investor Capital to CCP And PLA-Linked Companies
The House’s China Week also fails to include any legislation to address the de minimis loophole, which allows packages valued at less than $800 to enter the U.S. without facing any taxes, fees or inspection. As a result, this cripples domestic manufacturers and workers, undermines retailers, strains law enforcement resources, and facilitates the free flow of illegal and dangerous products and illicit drugs, particularly fentanyl.
# # #
