The global economy is clearly at a vulnerable point due to the coronavirus pandemic that the Chinese Communist Party failed to prevent from spreading across the globe. And given the CCP’s notorious lack of ethical boundaries, we have learned to expect the worst from them. If the CCP is not afraid to kill their own innocent civilians and apprehend dissidents in Hong Kong, then they certainly are not hesitant to advance their quest for hegemony by the acquisition of distressed companies whose technologies advance America’s national security.
China’s actions to cover up their handling of the outbreak have shed new light on China’s hegemonic intentions.
It’s time for America to act.
Several weeks ago, a retired Army General and fellow Night Stalker shared with me his concerns about how the communist leadership of China is looking to take advantage of the economic crisis caused by the coronavirus. China has a long track record of swooping in with reams of cash, making strategic purchases of U.S. companies in the critical infrastructure, technology, and defense sectors. In 2017, The New York Times profiled a range of American startups working on cutting-edge military technologies that received large investments from Chinese firms, including the Boston-based artificial intelligence company Neurala, which took funding from a firm backed by a state-run Chinese company when the U.S. Air Force didn’t follow through on its interest. Fast forward to today—even NATO Secretary-General Jens Stoltenberg has warned about China’s buying spree as asset prices fall during the pandemic.
China is looking to buy greater influence, and at a time when U.S. companies are particularly vulnerable, we need to act to maintain control of our technology and defense supply chain.
The reality is that China is looking to take advantage of the global financial crisis created by COVID-19 and ‘gobble up’ companies vital to our national defense. These companies are economically distressed, struggling to make payroll, pay expenses, and survive. But these companies that supply the equipment, systems, and technologies for our military to operate are essential to a strong America. Without a fully-armed supply chain, we will both be vulnerable to attack from our opponents and fall into a comparative disadvantage with China.
We must stop China from acquiring companies affecting U.S national security. That’s why I’ve introduced the SOS ACT (Secure Our Systems Against China’s Tactics) to block China’s strategic purchases during the pandemic. My bill sets aside $10 billion from the CARES Act to incentivize U.S. investors to invest in vulnerable companies that are critical to our national security. Investors would have investment guarantees, providing them with additional incentives to keep critical technology out of the hands of China and keep our defense supply chain strong. This would organize efforts and stimulate further investment to protect our Nation from the CCP’s predatory actions.
My legislation does not require new funding, but simply reallocates a small portion of existing funding, making it an easy addition to any future coronavirus relief package in Congress.
The challenges we face are unprecedented and have had a deep and direct impact on the lives and livelihoods of every American. The Chinese Communist Party’s coronavirus has already cost American taxpayers more than two trillion dollars. And that’s not even counting all the business and industry that’s been lost since the economy came to a halt. It’s time to address China’s deadly suppression and the damage the entire globe has endured as a result of their deceit. Because now, companies critical to America’s national security are among those at risk.
America’s defense supply chain infrastructure is vital to preserving this Nation. We simply cannot allow the CCP such a level of control, especially control of the businesses that supply the necessary equipment, systems, and technologies used by our military.
Congress must work together to thwart China’s efforts to strategically acquire U.S. defense companies during this crisis. The fact of the matter is now clear to every American—the Chinese Communist Party does not have our best interests at heart.
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