WASHINGTON — The Coalition for a Prosperous America (CPA) today released a statement following House passage of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2022 (H.R. 4350) that contained a provision addressing concerns about the Chinese Communist Party’s (CCP) genocide against Uyghur Muslims and other ethnic and religious groups in China. However, the House’s FY 2022 NDAA failed to impose meaningful capital market sanctions against Chinese companies that are implicated in genocide, forced labor, and supporting the People’s Liberation Army — among other malign activities. Earlier this week, CPA urged the House Rules Committee to support amendments to the FY 2022 NDAA that impose capital markets sanctions on Chinese companies and address the national and economic security threat posed by the CCP.
“CPA welcomes provisions in the House-passed NDAA that seek to increase procurement of domestically manufactured goods and that aim to counter the threat the CCP poses to U.S. economic and national security,” said Michael Stumo, CEO of CPA. “Importantly, this year’s NDAA reinforces the U.S. government’s determination that the CCP is committing genocide in Xinjiang. However, the House missed an opportunity to impose any capital markets sanctions on bad-actor Chinese companies. Democrats and Republicans have called for addressing the CCP’s exploitation of U.S. capital markets and tens of millions of American investors. It is time to turn those public calls into legislative action.”
CPA supports the following provisions included in the FY 2022 NDAA:
- Requires greater involvement in reporting and data gathering on Chinese companies in the U.S.;
- Requires briefings and limitations on support for the Olympic Games being held in countries that are designated perpetrators of genocide;
- Repeals the sunset of the Global Magnitsky Act sanctions regime;
- Limits purchases of foreign made unmanned aircraft systems;
- Requires certain essential medicines to be manufactured in the U.S. —including bovine heparin;
- Encourages and requires increased procurement of domestically manufactured goods in Department of Defense acquisitions, procurement, and supply chains;
- Creates a State Department official “China Watcher” program;
- Makes it the policy of the United States to reject any attempt by the People’s Republic of China (PRC) to mandate that US ships provide them with information when operating in areas that China illegally includes as part of its maritime claims;
- Declares that Beijing is engaging in genocide and crimes against humanity against the Uyghurs and other ethnic minorities; and
- Protects against Chinese malign influence in our supply chains and military depot maintenance.
CPA strongly supports the FY 2022 NDAA’s provision that codifies the U.S. State Department’s genocide declaration regarding the CCP’s crimes against humanity against the predominantly Muslim Uyghurs and other members of ethnic and religious minority groups in Xinjiang.
However, the House’s failure to bring forward any amendments that would impose further sanctions on Chinese companies complicit in illegal activities and the CCP’s genocide is a missed opportunity. If Congress is serious about holding the CCP accountable for its genocide and other atrocities in Xinjiang, lawmakers should impose capital markets sanctions on companies that are national security risks, i.e. those companies currently listed on the Commerce Department’s Entity List and the Department of Defense’s Chinese Military Companies List. Additionally, Congress should pass legislation establishing a State Department list of companies that violate human rights and impose capital markets sanctions on these companies.
Prior to the full House consideration of the FY 2022 NDAA, CPA provided briefings to Members of Congress and their staff, urged the House Armed Services Committee to adopt changes in Committee, sought the support of the House Rules Committee for certain amendments to be brought to the floor for a vote, and called on Congress to take serious action against the efforts of the CCP to undermine U.S. interests.