US lawmakers have introduced in the House of Representatives and the Senate identical legislations seeking to prohibit the sale of national security sensitive technology and intellectual property to China.
Congressmen Tim Ryan and Mike Conaway introduced the legislation in the House of Representatives, while Senator Rubio tabled it in the Senate.
"Re-balancing America's relationship with China is one of the great challenges of the 21st century. Without strong, consistent and strategic action to assert our national interests, China threatens to supplant the United States to undermine our security and prosperity," Rubio said.
"The Fair Trade with China Enforcement Act targets China's tools of economic aggression to make clear the United States will stand up for its workers on the international stage," he said.
Among other things, the legislation increases taxes on multinational corporations' income earned in China at a rate similar to the lost value of stolen intellectual property (IP) and technology.
It cancels an income tax treaty signed in the 1980s and tax China on their "investment" in the US, including their holdings of the national debt.
It would prepare duties on and impose Chinese investor shareholding caps on US companies producing, goods targeted by the Made in China 2025 plan.
It would also prohibit the federal government or subsidiaries/contractors from purchasing telecommunications equipment or services from Huawei and ZTE.
"Our imbalanced trading relationship with China raises significant national and economic security concerns for the United States that we should be taking seriously," said Ryan.
"China has taken advantage of our trading relationship, becoming increasingly aggressive with illegal trade practices in an attempt to specifically undermine and drive American companies out of business," said Conaway.
He said this presented significant national security and economic risks to the US.
"President Donald Trump has made strides towards improving our trading position with China, and the Fair Trade with China Enforcement Act will build on those efforts to ensure that America's own best interests are protected from Chinese aggression," he said.
This legislation prohibits the sale of national security sensitive US intellectual property and technology to China, and protects the US from China's attempts to weaken the US economy, Conaway said.
Chinese commercial technology is a proven vehicle for the Chinese government to spy on the US government, and this bill includes my legislation to prohibit the federal government from purchasing or leasing Huawei or ZTE products or services, he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)