Congress Advances Historic Crackdown On American Cash Fueling China

The long-awaited crackdown on U.S. financing of China’s military and strategic industries is one step closer to becoming law after lawmakers in the House of Representatives succeeded in incorporating sweeping restrictions on overseas investment into the National Defense Authorization Act (NDAA).

The House passed the massive $900 billion defense policy bill on Wednesday, paving the way for a vote in the Senate next week before the measure heads to President Donald Trump’s desk. Supporters of the overseas investment restrictions — including Republican Rep. Andy Barr of Kentucky — call them “the strongest framework in history” to safeguard U.S. capital and strengthen national security.

“This legislation takes President Trump’s America First investment policy to the next level and puts Beijing on notice,” said Barr, who introduced the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act included in the House version of the NDAA. “Congress is sending a clear message: more American money for [Chinese Communist Party] to build missiles aimed at our troops, the next spy balloon to fly over our communities, or anything else that could harm Americans. (RELATED: EXCLUSIVE: US Nuclear Bomber Fleet Shares Fence With Trailer Park Linked to Chinese Intelligence Fraudster)

WASHINGTON, DC – MAY 7: Rep. Andy Barr (R-KY) speaks with Rep. Warren Davidson (R-OH) before a House Financial Services Committee hearing on May 7, 2025 in Washington, DC. (Photo by Pete Marovitch/Getty Images)

If passed, this provision would prohibit U.S. investments in sensitive Chinese technology, require domestic companies to notify the Treasury Department of certain transactions in the People’s Republic of China (PRC), and authorize the Treasury Secretary to sanction Chinese entities linked to the country’s military or intelligence services.

Lawmakers tried to attach similar language to defense funding bills in 2023 and 2024, but were unsuccessful. Notably, the measure faced resistance in 2023 from then-House Financial Services Committee Chairman and North Carolina Republican Rep. Patrick McHenry, who said increased U.S. private investment in China would prevent Beijing from taking state control.

The initiative now enjoys broad bipartisan support and strong support from China hawks who warn that billions in U.S. capital have fueled critical PRC technology companies, including those linked to the Chinese military, the surveillance state, and the CCP’s genocide against Uyghur Muslims.

In 2023 alone, major U.S. financial institutions like BlackRock have injected $6.5 billion into 63 Chinese companies blacklisted by the U.S. government for their support of the CCP military or human rights abuses, according to the House Select Committee on the CCP.

The restrictions would also extend to investments in other countries adversarial to the United States, including Iran and North Korea.

“President Trump has made it clear that decades of investment supporting Communist China’s aggression must end,” President Mike Johnson said, calling the inclusion of investment restrictions “an important step to protect our nation’s national security and economic competitiveness.”

Republican Sen. John Cornyn of Texas, who sponsored the Senate version of the FIGHT China Act, also said he was glad the effort was coming to an end.

“This landmark legislation would prohibit and require notification of U.S. investments in certain technologies in countries of concern, ensuring that American ingenuity, innovation and investments do not end up in the hands of adversaries like the Chinese Communist Party to be used as weapons against us,” Cornyn said.

Republican Rep. Brian Mast of Florida also called the measure a “big win” for national security, cutting off “American investors from fueling Beijing’s military machine.”

The investment restrictions also have support from Democrats, including Sen. Elizabeth Warren of Massachusetts, who co-sponsored the Senate bill and called it “an important step to ensure the United States remains the world leader in cutting-edge technology.”

Other victories for China hawks in the NDAA include the BIOSECURE Act, which limits federal contracts with biotechnology companies linked to foreign adversaries such as the PRC. That provision had already been shelved in 2024 after Democratic Rep. Jim McGovern of Massachusetts — then chairman of the House Rules Committee — intervened to protect jobs tied to one of the targeted Chinese companies in his district.

Despite the NDAA’s new restrictions on China, the president announced Monday that the United States will allow Nvidia to ship its advanced H200 AI processors to approved Chinese customers in exchange for a 25% surcharge. Critics say the move risks eroding America’s technological lead and jeopardizing long-term national security, noting that China is unlikely to produce a domestic equivalent until at least later. 2027.

Although the defense bill was approved by the House, it drew objections from several Republicans who criticized the authorization of additional security aid to Ukraine and other foreign countries, the omission of provisions prohibiting a central bank digital currency, and the inclusion of certain DEI-related provisions.

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