Congress Passes $900B Defense Bill Targeting China with Tech Restrictions

Congress has passed a $900 billion defense bill aimed at reshaping U.S. economic and military competition with China. The legislation imposes investment restrictions targeting high-risk technologies in China and bans Chinese-made technologies from Pentagon supply chains.

A new outbound investment screening system will require U.S. companies to notify the Treasury Department about investments in certain technologies, granting the Treasury the authority to block such deals.

The bill also includes procurement bans on biotechnology firms linked to China's military, along with sourcing prohibitions on advanced batteries, photovoltaic components, and critical minerals from foreign entities of concern.

It mandates the phase-out of Chinese-made computers and other tech equipment within the Pentagon. Additionally, the legislation establishes an 'Artificial Intelligence Futures Steering Committee' to provide long-term forecasts and policy recommendations for advanced AI systems.

The bill allocates funding for enhanced military capabilities and strengthens U.S. presence in the Indo-Pacific, including support for Taiwan's security cooperation program. Key measures also extend the Pacific Deterrence Initiative and authorize funding for missile defense programs in collaboration with Israel.

The NDAA also repeals two long-dormant war authorizations related to earlier phases of U.S. military involvement in Iraq but leaves the post-9/11 counter-terrorism authority intact. This comprehensive defense bill reflects ongoing tensions with China and the U.S. commitment to safeguarding its technological and military interests.