On Tuesday, November 15, 2022, Janes Senior China Analyst Claire Chu participated in a Congressional hearing titled,"Investing in our Rivals: Examining U.S. Capital Flows to Foreign Rivals and Adversaries Around the World."
The hearing, held by the U.S. House of Representatives’ Financial Services Committee Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, focused on how rising international tensions, as well as evolving domestic regulatory settings, have subsequently changed the risk environment for investor protection and increased the challenges related to investor exposure to companies in certain countries, such as China and Russia.
Ms. Chu’s testimony built upon her 2021 testimony to the same subcommittee, at a hearing titled "Taking Stock of China, Inc.: Examining Risks to Investors and the U.S. Posed by Foreign Issuers in U.S. Markets". Ms. Chu’s verbal testimony provided the Representatives context on the nature of Chinese corporate actors and their role in China’s state-led economy, the risks to investors and the United States, as well as policy recommendations. After her opening remarks, Ms. Chu and the other witnesses took questions from the representatives. The hearing and Claire’s remarks were aired live on CSPAN. A recording of the remarks can be found here: https://www.youtube.com/watch?v=OxkFVvteHWw. Her opening statement takes place from 22:30-27:20.
Ms. Chu’s remarks underscore how the Western response to Russia’s invasion of Ukraine in February was not led by boots on the ground, but by the unprecedented use of economic and financial statecraft. The suite of economic sanctions, export controls, financial restrictions that the U.S. government enacted appeared to signal a shift towards non-kinetic, unconventional tactics, as well as an increasing willingness to use economic and financial tools to enhance or complement other forms of response.
About Claire Chu
Claire Chu is a senior China analyst at Janes. She researches the geopolitical and national security implications of China’s global economic activity, including foreign direct investment and global financial flows.
About Geoeconomic Statecraft
Janes delivers open-source intelligence on the global business activities of Chinese and Russian companies. Threats to national security have become increasingly varied and dynamic. Our data and analysis improves our customers’ situational awareness of how governments leverage companies within their jurisdiction, including state-owned and state controlled enterprises, for strategic purposes.
