US risks ‘funding our own destruction’ if investor capital flows to Chinese defense firms, key lawmaker says

• Rep. Mike Gallagher urged President Biden to widen limits on US investments in China.
• Forthcoming restrictions should cover US participation in Chinese public markets, he said.
• “If American capital continues to flow to Chinese military companies, we are at risk of funding our own destruction.”

Rep. Mike Gallagher, R-Wisconsin, has appealed to the Biden administration to introduce stricter curbs on US investment in China, according to a letter obtained by the Financial Times.

In the letter to President Biden, he said new limits on US investments expected soon from a White House executive order should include Chinese public markets where stocks and bonds are traded — not just direct investments from private equity and venture capital funds.