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**AUGUST 21, 2023**

On the Prospect website

* Jarod Facundo goes inside the UAW negotiations with the Big Three
<[link removed]"CFIUS in reverse
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CFIUS is the Committee on Foreign Investment in the U.S.
<[link removed]"The order will prohibit venture capital and private equity firms from
pumping more money into Chinese efforts to develop semiconductors and
other microelectronics, quantum computers and certain artificial
intelligence applications."

In fact, the order merely directs the Treasury to take comments on the
general idea, and to issue regulations within six months that require
advance notifications of possibly prohibited transactions. The order
will only take effect next year and is widely expected to define
national-security prohibitions extremely narrowly. Nothing in it will
affect the vast majority of venture capital and private equity
investment flows to China, much less portfolio investments.

The details of the order were the subject of fierce infighting between
relative hawks in the administration with national defense and
industrial-policy concerns, and doves at the Treasury. The anodyne order
suggests that Treasury won, and Treasury will be in charge of writing
the regs and carrying the order out.

Meanwhile, the administration is coming under increasing pressure from
both corporate America and its own China doves to normalize relations.
Commerce Secretary Gina Raimondo is travelling to Beijing later this
week, ostensibly to promote U.S. exports. Raimondo will come under
pressure from her counterparts to weaken the export controls.

The administration has been warned by Republicans to keep export
controls off the agenda. "We urge you, prior to your trip, to publicly
clarify that U.S. export controls are non-negotiable, and that the PRC
should expect more, not less, U.S. export controls moving forward," Rep.
Mike Gallagher (R-WI), chair of the House Select Committee on the
Chinese Communist Party, House Foreign Affairs Chair Michael McCaul
(R-TX), and other representatives wrote in a letter to Raimondo on
Friday
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