To Do: Stop Subsidizing Chinese Companies
Recommendation
Congress should prohibit cities, states, and the federal government from providing funding to attract investments from Chinese companies.
Details
While Washington is working to help U.S. companies compete with China, state and local governments are doing the opposite by subsidizing Chinese companies in order to attract investments. As such, Congress should pass legislation prohibiting cities, states, and the federal government from providing any funding to Chinese companies investing in the United States. Lawmakers can start by prohibiting any federal financial aid from being awarded to firms with more than de minimis Chinese interests. This should include federal loans and grants, along with state and local assistance tied to federal programs. In addition, lawmakers should make federal aid contingent upon a state and all its local jurisdictions not providing funding to Chinese companies investing in the United States. The new administration should also issue an executive order preventing any federal aid from going to Chinese companies in the United States.
Keep reading:
▪ Robert D. Atkinson, “State and Local Government Need to Stop Subsidizing Chinese Companies,” The Hill, April 21, 2022, https://thehill.com/opinion/finance/3275383-state-and-local-governments-need-to-stop-subsidizing-chinese-companies/.