Chinese State Media: "US Companies' Biggest Risk Is Congress... Addicted to Anti-China Sentiment"

As a bipartisan report advocating for strong sanctions against China emerged in the U.S. House of Representatives, Chinese state media published an editorial criticizing it, claiming that "Congress is the biggest risk to American companies."

China's state-run Global Times (GT) reported on the 13th that "the U.S. business community has expressed concerns over the regulatory proposal report on China by the U.S. House China Task Force." GT stated, "There is fierce competition within the U.S. to express a tough and radical stance against China," adding, "In particular, some lawmakers have adopted a drastic anti-China approach as a means to realize their political ambitions."

It continued, "While American society pays great attention to the fentanyl addiction problem, politicians' 'anti-China addiction' is even more severe," emphasizing, "The numerous sanctions imposed by the U.S. in the trade and technology wars against China have failed to achieve the expected results of subduing or overthrowing China, instead causing dissatisfaction among American companies." It also criticized, "At this moment, Washington politicians are not reflecting on whether they have made mistakes or need adjustments, but are taking even more aggressive and intensified actions."

Earlier, the U.S. House China Task Force released a comprehensive report on the 12th (local time) containing over 130 regulatory proposals targeting China. The report included responses to sensitive issues such as TikTok, semiconductors, and Chinese drones, as well as excluding China from Most Favored Nation status under the World Trade Organization (WTO). It also urged the Federal Reserve to prepare countermeasures against potential damages to U.S. banks caused by Chinese regulatory actions, criticizing the U.S. government for failing to establish an "emergency plan" in preparation for an economic war with China.

Additionally, the report proposed legislation requiring social media companies owned by "foreign hostile forces," including TikTok's parent company ByteDance, to divest their U.S. holdings and face business bans. It also argued that the Department of Commerce should be granted authority to impose tariffs on Chinese semiconductors.

GT cited a statement from the Retail Industry Leaders Association, which includes Target, Home Depot, and Dollar General, regarding the report, saying, "American companies stated that tariff increases on Chinese products only harm U.S. companies," and "They viewed that the costs related to tariff hikes are borne by U.S. importers, harming American companies, workers, and consumers."

GT further emphasized, "The day before the report's release, Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), warned that the fragmentation of the global economy and changes in U.S.-China trade could trigger a new Cold War," underscoring, "The current reality is that the source of concern for foreign companies in China, including American firms, lies in the offices of certain members of the U.S. Congress."