Politics

Any new oversight or regulation for financial activity overseas would be a break from decades of U.S. policy.

There’s a new divide fracturing congressional Republicans — over how hard to go after China.

Some GOP national security hawks want broad oversight on U.S. investment in Chinese tech businesses, concerned that American banks are helping fund Beijing’s military development. But they’re facing off against lawmakers with ties to Wall Street — part of the GOP’s traditional coalition — who worry about expanding regulations over business abroad.

The disagreement is endangering GOP efforts to restrict U.S. investments in China just as President Joe Biden is preparing to weigh in with an executive order — giving Democrats an opportunity to paint themselves as tougher on Beijing ahead of the 2024 election year.

Any new oversight or regulation for financial activity overseas would be a break from decades of U.S. policy that largely allowed American firms free rein in other nations. The issue is where — and how — to draw the line between permissible investments in the Chinese economy and those that could fund companies or technological advancements that assist Beijing’s military rise.

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