US-China Commission recommends business transparency – Community News
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US-China Commission recommends business transparency

The US-China Economic and Security Review Commission warns in its annual report to Congress that US companies are finding it more difficult to do business in China.

“It is becoming an increasingly difficult business environment for US companies,” Carolyn Bartholomew, chairman of the board of directors of the US-China Commission, said during the report.s release. The US-China Commission is an independent agency of the US government and its annual report assesses the national security implications of the US-China economic relationship.

In fact, companies like Yahoo Inc. and LinkedIn recently announced their withdrawal from China due to increased regulatory crackdowns.

It is an increasingly difficult business environment for American companies.

Carolyn BartholomewChairman, US-Chinese Economic and Security Review Commission

Bartholomew said there are ongoing concerns about Hong Kong’s new national security law, the Chinese Communist Party’s crackdown on companies operating in the country, and problems with cross-border data transfers. Engineering companies build products based on the free flow of information, something that is being jeopardized by Chinas government, she said.

Recommendations

As US business in China faces challenges, the US-China commission made 32 recommendations to both companies operating in China and Congress to guide policy.

One of the US-China commission’s recommendations to Congress includes requesting a report from President Joe Bidens administration related to data service activities, such as cloud-based application providers owned by Chinese companies. The report must state whether the companies operate in the US, which laws apply to those services, and whether cloud computing services are offered or provided to US residents.

For businesses, the US-China committee recommended transparency when it comes to Chinese operations, said Bob Borochoff, commissioner on the US-China committee’s board.

“Our recommendations are not intended to prevent US companies from investing in Chinese companies, or [prevent] American companies that do not operate in China,” he said during the report’s publication, “but they are designed to give Americans a chance to know what they are investing in.”

Congress debates a bill to increase technology competition with China. The US Innovation and Competition Act allocates $190 billion to bolster US technology and research capabilities to compete with China, as well as $52 billion to bolster US-based semiconductor manufacturing.

Also this week

  • The US Senate has confirmed major technology critic Jonathan Kanter as assistant attorney general of the antitrust division of the US Department of Justice. Biden announced Kanter’s nomination for the position earlier this year. Kanter, an antitrust attorney, is a partner of The Kanter Law Group PLLC that advocates for federal and state enforcement of antitrust laws. Commenting on Kanter’s confirmation, Lina Khan, chair of the Federal Trade Commission, said: “The FTC and DOJ Antitrust Division are critical partners in vigorously enforcing antitrust laws, and I look forward to our close cooperation as we work together to prevent illegal mergers.” and monopolistic behavior and to promote open markets and economic opportunities.”
  • Ohio Attorney General David Yost is suing Meta, Facebook’s parent company, for misleading the public about how it controlled its algorithms and how its algorithms affected children. The lawsuit alleges that from April 29 to October 21, 2021, Facebook violated federal securities laws by failing to be transparent about the negative effects its products have on children. “Facebook said it looks out for our children and eradicates online trolls, but in reality it is creating misery and division to make a profit,” Yost said in a press release.
  • The US House of Representatives has passed Biden’s Build Back Better Act, a $1.75 trillion plan that allocates $500 billion in climate change efforts, such as clean energy tax credits. It is one of the largest federal investments in clean energy. The Build Back Better Act now has to go to the US Senate, where it will be deliberated in the coming weeks.

Makenzie Holland is a news writer on big tech and federal regulation. Before joining TechTarget, she was a general reporter for the Wilmington StarNews and a crime and education reporter at the Wabash Plain Dealer.

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