The Biden administration recently declared a national emergency to address threats from countries advancing sensitive military technologies, an action praised by congressional leaders for its thoughtful approach to national security and free-market principles.
"We're glad to see the Biden administration take a more thoughtful and targeted approach than initially reported," Chairman of the House Financial Services Committee Patrick McHenry, R-N.C., and Chairman of the Subcommittee on National Security, Illicit Finance and International Financial Institutions, Blaine Luetkemeyer, R-Mo., said in a release.
The order is a significant move addressing concerns over the advancement of sensitive technologies crucial to military, intelligence, surveillance and cyber capabilities. The order not only declares a national emergency to address these threats but also outlines a series of measures designed to tackle this multifaceted problem, the White House said.
The two congressmen, who lead the House Financial Services Committee, expressed concerns earlier over potential risks that could undermine fundamental American principles, such as the free flow of capital, the release reported.
"The White House listened to our concerns about the risks of undermining bedrock American principles, including the free flow of capital. This is confirmation that we can confront the Chinese Communist Party with a smart approach rather than harmful policy," McHenry and Luetkemeyer said in the release. "Instead of emulating Xi Jinping, we should be working to export our rule of law and property rights. Congress must look past 'feel good,' but inadequate, policies and take stronger action to confront the CCP by building on the tried and tested sanctions and export controls regimes. The House Financial Services Committee will lead the effort to address this through legislation, rather than executive fiat."
The newly announced order focuses on various measures, such as regulations that require notification of specific transactions involving "covered foreign persons" and prohibit certain transactions, the White House reported. The responsibility of implementing the order falls upon the secretary of the Treasury, who will consult with relevant agencies, communicate with Congress and report to the president.
Additionally, the order provides a detailed definition of terms like "country of concern," "covered foreign person" and "covered national security technologies and products." It also includes provisions related to confidentiality, exemptions and general clauses for smooth implementation, the White House reported.
This targeted approach is seen by many as a constructive step in safeguarding national interests without overreaching into areas that may disrupt core American values. The commitment from the House Financial Services Committee to support this initiative through legislation further strengthens the move towards a more comprehensive policy, according to the White House.