The House committee, in a bipartisan effort to address economic competition between the United States and China, expressed the need for congressional action to impose restrictions on American investments in Chinese companies, including those involved in artificial intelligence.

"It is the responsibility of Congress to ensure that American funds do not support the Chinese Communist Party's (CCP) ambitious technological endeavors, such as AI, quantum computing, semiconductors, as well as biotechnologies, directed energy, hypersonics, advanced manufacturing, space technologies, and anything related to the PRC's military-industrial complex," stated Representative Mike Gallagher, Chairman of the House Select Committee on the Chinese Communist Party.

During the hearing, Gallagher, a Republican from Wisconsin, asserted that American companies continuing to invest in blacklisted Chinese firms are inadvertently financing the Chinese government's aspirations to take control of Taiwan.

Government employee pension funds are also implicated in this issue. Representative Raja Krishnamoorthi, a Democrat from Illinois and ranking member of the committee, referenced a May Newsweek report indicating that at least 115 mutual funds available through the federal government's Thrift Savings Plan include shares of one or more of the 30 sanctioned or watch-listed Chinese companies that pose threats to national security.

"By investing in these companies, we risk supporting the CCP's military aggression and their human rights abuses," warned Krishnamoorthi.

He also emphasized the potential dire consequences, including a catastrophic war and global economic downturn, should the Chinese Communist Party take action against Taiwan, underscoring the importance of preventing such a scenario.

On the other hand, Gallagher questioned whether Wall Street firms have adequately assessed the threats posed by the People's Republic of China, including potential risks to the U.S. economy in the event of a PRC invasion of Taiwan.

"What measures is Wall Street taking to guard against this possibility?" Gallagher asked during the hearing. "Are banks and asset managers taking steps to protect American investors, or are they merely relying on government bailouts?"

At least one Wall Street firm, JPMorgan Chase, has expressed concerns about strained relations with China. JPMorgan CEO Jamie Dimon remarked at a financial conference in New York that while he does not anticipate a war over Taiwan, the situation could deteriorate. He added that prospects for JPMorgan's operations in China are becoming less optimistic due to uncertainties in IPO and merger markets.