China Economic Review

US policymakers propose new bill to keep tech secrets from China

Florida senator and former presidential candidate Marco Rubio has put forward legislation aimed at protecting US technology from Chinese companies and increase duties on imported products, just one day after telecoms company ZTE Corp. announced the cessation of its core business operations.

The bill, named the “Fair Trade with China Enforcement Act”, would ban US companies from selling technology that could be used in matters of national security to parties linked to the Chinese state, Reuters reports.

It would also raise taxes on earnings of multinational corporations received in China, as well as cap Chinese ownerships in US companies from industries prioritised by China’s “Made in China 2025” scheme, such as biotechnology and aerospace.

Introducing the bill to US policymakers, Rubio said: “How America responds to the growing threats posed by China is the single most important geopolitical issue of our time, and will define the 21st century.”