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Exclusive Chinese embassy puts pressure on US companies to oppose Chinese bills, sources told Reuters

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© Reuters. FILE PHOTO: The Chinese national flag was unveiled in Beijing, China on April 29, 2020. REUTERS / Thomas Peter

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By Michael Martina

WASHINGTON (Reuters) – China has in recent weeks urged U.S. executives, companies and business groups in the U.S. Congress to fight China-related bills, four sources familiar with the initiative told Reuters in several letters and meetings. business community actors.

Letters from China’s embassy in Washington have asked executives to change or remove specific bills seeking to improve U.S. competitiveness in Congress, according to the text and sources in a letter sent by the embassy’s economic and trade office.

Chinese officials warned companies that they would risk losing market share or revenue in China if the law becomes law, according to the text of the letter.

The Chinese embassy and the head of its economic and trade office did not return a separate request for comments.

Sources said that China’s request has left some people who have received a letter worried that they were violating the Foreign Agents Registration Act (FARA) by lobbying lawmakers on similar issues in the future.

As a result, none of the sources wanted to identify who received or saw the letter.

Extensive legislation to promote competition with the U.S. and finance the production of the necessary semiconductors, known as the U.S. Innovation and Competition Act (USICA), was passed in the Senate in June with bilateral support. A related bill in the House of Representatives called the Eagle Act, which focuses on stricter policy, has come to a standstill as Congress has been concerned about other internal initiatives.

The language of the letters, Reuters specified, was sent to many people individually, explicitly urging companies to oppose USICA and the Eagle Act.

Beijing sees measures that take a strong stance on China on human rights and trade issues as part of the U.S.’s efforts to confront the country’s growing economic and geopolitical strength.

“We sincerely hope … members of Congress to abandon zero-mindedness and ideological prejudice, eliminate China-related negative bills, demand the elimination of negative provisions, create good bilateral economic conditions. And trade cooperation before it is too late,” the Chinese embassy said. in a letter sent in early November.

Reuters has confirmed the shared language of the letter with four sources.

“The result of these bills, which have negative impacts related to China, will not be the ones that will affect the interests of US companies while protecting the interests of Chinese companies. It will harm everyone,” he said.

“Promoting a supply chain without China will inevitably lead to a decline in China’s demand for U.S. products and a loss of market share and revenue for U.S. companies in China,” he said.

Two sources said similar messages were conveyed at meetings with Chinese embassy staff.

“A foreign government is an absolute request,” one source said, noting the effects of FARA, which calls for people acting on behalf of a foreign power or political party to report such relations to the Justice Department.

A second source said the approach was aimed at delaying the legislative process for companies instead of completely blocking bills.

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