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A bipartisan group of lawmakers support limiting the ability of American citizens to invest in Chinese companies. A small group of Republicans, meanwhile, is advocating a more measured approach.

On November 20, over 40 U.S. lawmakersincluding Sens. Marco Rubio (RFla.), Debbie Stabenow (DMich.), and Angus King (IMaine)signed a letter to the ranking members of both the House and Senate Armed Services Committees.

“We are deeply concerned,” the letter read, “about the potential national security threats posed by outbound capital flows and knowledge transfer to the United States’ adversaries,” namely China. “There is strong bipartisan consensus in both the U.S. Senate and the U.S. House of Representatives that Congress must act to address the national security threat posed by these outbound investments.”

To that end, the signers hoped the 2024 National Defense Authorization Act (NDAA)the annual must-pass legislation that funds the various components of the national security apparatus, from paying soldiers to maintaining the nuclear stockpilewould include a provision that addressed their concerns.

The Senate passed its version of the NDAA in July, though it seems unlikely the House will pass the same version untouched. The Senate bill included Amendment 931, which the chamber accepted by a 916 vote. Under the terms of the amendment, any U.S. citizen or company investing in sectors like semiconductors, satellites, or artificial intelligence in a “country of concern” (like China) would have to provide written notification of the transaction to the Secretary of the Treasury at least two weeks in advance.

The bipartisan letter asked that the NDAA include language that addresses outbound investments in China “and ideally strengthen the language.” It mentioned Amendment 931 as well as Executive Order 14105, issued by President Joe Biden in August, which declared “a national emergency to deal with this threat”that threat being the “advancement by countries of concern in sensitive technologies and products critical for the military, intelligence, surveillance, or cyber-enabled capabilities.”

The bipartisan letter noted, seemingly positively, that the executive order “goes beyond notification to consider prohibition of investment in some sectors.”

While the Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) reviews investments made in the U.S. by foreign nationals, Biden’s executive order wants regulations going in the other direction, to potentially limit Americans’ investments in foreign countries. As Reason’s Eric Boehm reported at the time, “There are only two other countriesSouth Korea and Taiwanthat have outbound investment screening systems.”

At the congressional level, the proposal is currently being held up by Rep. Patrick McHenry (RN.C.), chairman of the House Financial Services Committee who briefly served as House Speaker Pro Tempore in October. As Bloomberg reported this week, “McHenry, who has long opposed broad investment restrictions in favor of an approach that targets individual companies,” is “effectively blocking” the measure’s inclusion in the House’s version of the NDAA.

In a September 27 letter to Treasury Secretary Janet Yellen, McHenry expressed relief that the “scope” of Biden’s executive order was “less broad than some had anticipated” but nevertheless felt the administration’s policy was “arbitrary, relies on baseless assumptions, and in certain places is incoherent.”

“If we oppose China’s state-run economy, we want more private investment not less,” McHenry wrote. “Of those private investors, we want more of them to be Americans not fewer.”

McHenry has a point. “We should be targeting specific companies rather than imposing blanket restrictions,” says Clark Packard, a research fellow at the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies.

“Broadly speaking, I don’t think Americans should be investing in companies that make equipment used to surveil and further repress Uyghurs,” Packard added, pointing to an April Axios report that said cameras made by Chinese-owned surveillance firm Hikvision have been used to surveil Uyghurs, the Muslim minority population that has been subjected to a campaign of authoritarian repression by the Chinese government.

Outright bans on investment would be a bridge too far, even for a country like China with such a dismal human rights record, and could even backfire. Rep. Andy Barr (RKy.), who serves with McHenry on the House Financial Services Committee, tweeted that the proposed regulations “would inadvertently bolster [Chinese President] Xi Jinping’s goal to block American influence in the Chinese market.” Barr added, “It’s crucial we find the right balance in safeguarding American influence and intelligence without creating unnecessary bureaucracy. ”

Last week, Ian Allen at Just Security wrote that the proposed rules could also lead other nations, including allies and trading partners, to adopt restrictions of their own, in turn. “Overly restrictive measures risk impediments to global technological advancement, blowback for domestic industries, and high administrative costs (which are projected to reach $10 million simply to start the program),” Allen warns.

Besides, there is reason to suspect that a more measured approach is warranted. “Foreign direct investment in China turned negative during the 3rd quarter of 2023 for the first time on record,” Packard added. “In other words, more capital flowed out of China than into China in the 3rd quarter of 2023. Likewise, between 2014 and 2020, foreign direct investment from G7 countries into China fell by about half.” Industrialized nations are turning their backs on an increasingly illiberal China.

Just like targeted sanctions, Congress can designate certain companies that are particularly objectionable to be off-limits, while allowing Americans the freedom to otherwise use their money as they see fit. On the other hand, an all-encompassing ban as has been proposed by members of both major parties would be too aggressive and could even risk escalating tensions with the world’s second-largest economy.

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Judge: 23XI, Front Row can’t keep using charters

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Judge: 23XI, Front Row can't keep using charters

CHARLOTTE, N.C. — A federal judge on Thursday rejected a request from 23XI Racing and Front Row Motorsports to continue racing with charters while they battle NASCAR in court, with the teams saying it puts them at risk of going out of business.

The ruling means the teams’ six cars will race as open entries this weekend at Dover, next week at Indianapolis and perhaps longer than that.

U.S. District Judge Kenneth Bell denied the teams’ bid for a temporary restraining order, saying they will make races over the next couple of weeks and they won’t lose their drivers or sponsors before his decision on a preliminary injunction.

Bell left open the possibility of reconsidering his decision if things change over the next two weeks.

After this weekend, the cars affected may need to qualify on speed if 41 entries are listed — a possibility now that starting spots have opened.

23XI, which is co-owned by retired NBA great Michael Jordan, and FRM filed their federal suit against NASCAR last year after they were the only two organizations out of 15 to reject NASCAR’s extension offer on charters.

The case has a Dec. 1 trial date, but the two teams are fighting to be recognized as chartered for the current season, which has 16 races left. A charter guarantees one of the 40 spots in the field each week, but also a base amount of money paid out each week.

Jordan and FRM owner Bob Jenkins won an injunction to recognize 23XI and FRM as chartered for the season, but the ruling was overturned on appeal earlier this month, sending the case back to Bell.

Three-time Daytona 500 winner Denny Hamlin co-owns 23XI with Jordan and said they were prepared to send Tyler Reddick, Bubba Wallace and Riley Herbst to the track each week as open teams. They sought the restraining order Monday, claiming that through discovery they learned NASCAR planned to immediately begin the process of selling the six charters which would put “plaintiffs in irreparable jeopardy of never getting their charters back and going out of business.”

“This is a fair and significant fear; however, NASCAR has agreed that it ‘will not sell any charters before the court can rule on plaintiffs’ motion for preliminary injunction,'” Ball wrote. “Similarly, plaintiffs worry that denying them guaranteed entry into the field for upcoming races could adversely impact their competitive standing, including their ability to earn a spot in the playoffs. Again, a legitimate, potentially irreparable harm. Yet, akin to the sale of charters, NASCAR represents to the court that all of plaintiffs’ cars will qualify (if they choose to race) for the races in Dover and Indianapolis that will take place during the next 14 days.”

Making the field won’t be an issue this weekend at Dover as fewer than the maximum 40 cars are entered. But should 41 cars show up anywhere this season, someone slow will be sent home and that means lost revenue and a lost chance to win points in the standings.

Reddick was last year’s regular season champion and raced for the Cup Series championship in the season finale. But none of the six drivers affected by the court ruling are locked into this year’s playoffs.

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One child dies after coach crashes in Somerset on way back from school trip

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One child dies after coach crashes in Somerset on way back from school trip

One child has died after a coach bringing children back from a school trip crashed and overturned near Minehead, Somerset, police have said.

A major incident was declared after the vehicle, which had 60-70 people on board, crashed on the A396 Cutcombe Hill, between Wheddon Cross and Timbercombe, shortly before 3pm on Thursday afternoon.

The coach was heading to Minehead Middle School at the time.

At a news conference on Thursday night, officials confirmed one child died at the scene.

A further 21 patients were taken to hospital, including two children who were transported via air ambulance. “Several” other people were treated at the scene, they added.

A police officer near the scene of a coach crash in Somerset. Pic: PA
Image:
A police officer near the scene of the coach crash in Somerset. Pic: PA

“This has been an incredibly challenging scene for all emergency services,” Chief Superintendent Mark Edgington said.

“Today’s events are truly tragic, we know the whole community and wider area will be utterly devastated to learn of this news.”

An investigation into what caused the crash will be carried out, he added.

Gavin Ellis, the chief fire officer for Devon and Somerset Fire & Rescue Service, said the coach “overturned onto its roof and slid approximately 20ft down an embankment”.

He praised an off-duty firefighter who was travelling behind the vehicle for helping at the scene, before crews then arrived to carry out rescues “in extremely difficult circumstances”.

“I’m grateful for the tireless effort and actions of the crews in doing everything they could for those who were trapped and as quickly as safely as possible,” he said.

“I’m extremely proud of the efforts that my firefighters took today at this tragic event.”

Eight fire engines were sent to the scene, with two specialist rescue appliances and around 60 fire personnel, Mr Ellis said.

A total of 20 double-crewed ambulances, three air ambulances and two hazardous area response teams were also sent to the scene, a representative for the South Western Ambulance Service said.

Emergency services near the scene in Minehead
Image:
Pic: PA

Ch Supt Mark Edgington said: “Many passengers either sustained minor injuries or were physically unharmed and were transferred to a rest centre.

“Work to help them return to Minehead has been taking place throughout the evening.

“An investigation into the cause of this incident will be carried out.”

Minehead Middle School has pupils aged between nine and 14, and is five days away from the end of term.

‘I don’t have words,’ says local MP

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‘From one mother to another, I feel your pain’

Rachel Gilmour, MP for Tiverton and Minehead, has said the road where the coach crashed is “very difficult to manoeuvre”.

Speaking to Sky News chief presenter Anna Botting, Ms Gilmour said she visited Minehead Middle School recently, where she “met the children and they were full of joy, enthusiasm and were very positive”.

“I know many of their parents,” she said. “I don’t have words.”

Describing the scene, Gilmour continued: “You have a very difficult crossing at Wheddon Cross, and as you come out to dip down into Timbercombe, the road is really windy and there are very steep dips on either side.

“If the coach, as the police are saying, went 20ft off the road, you are literally on a really, really steep bank.”

The MP, whose constituency is partly in Devon and partly in Somerset, said there is a “really, really close community”.

“We will pull together, but it would be crass of me to say to a parent who’s just lost their child that I could make things better, I can’t,” she said.

“All I can say is that from one mother to another, I feel your pain.”

Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps
Image:
Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps

Sir Keir Starmer said in a post on X: “There are no adequate words to acknowledge the death of a child. All my thoughts are with their parents, family and friends, and all those affected.

“Thank you to the emergency workers who are responding at pace – I’m being kept up to date on this situation.”

Education Secretary Bridget Phillipson wrote: “It is heartbreaking to hear that a child has died and others are seriously injured following the incident in Minehead earlier today.

“My thoughts are with their friends and families, and all those affected by this tragic event.”

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Elon Musk’s Neuralink filed as ‘disadvantaged business’ before being valued at $9 billion

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Elon Musk's Neuralink filed as 'disadvantaged business' before being valued at  billion

Jonathan Raa | Nurphoto | Getty Images

Elon Musk’s health tech company Neuralink labeled itself a “small disadvantaged business” in a federal filing with the U.S. Small Business Administration, shortly before a financing round valued the company at $9 billion.

Neuralink is developing a brain-computer interface (BCI) system, with an initial aim to help people with severe paralysis regain some independence. BCI technology broadly can translate a person’s brain signals into commands that allow them to manipulate external technologies just by thinking.

Neuralink’s filing, dated April 24, would have reached the SBA at a time when Musk was leading the Trump administration’s Department of Government Efficiency. At DOGE, Musk worked to slash the size of federal agencies.

MuskWatch first reported on the details Neuralink’s April filing.

According to the SBA’s website, a designation of SDB means a company is at least 51% owned and controlled by one or more “disadvantaged” persons who must be “socially disadvantaged and economically disadvantaged.” An SDB designation can also help a business “gain preferential access to federal procurement opportunities,” the SBA website says. 

Musk, the world’s wealthiest person, is CEO of Tesla and SpaceX, in addition to his other businesses like artificial intelligence startup xAI and tunneling venture The Boring Company. In 2022, Musk led the $44 billion purchase of Twitter, which he later named X before merging it with xAI.

Jared Birchall, a Neuralink executive, was listed as the contact person on the filing from April. Birchall, who also manages Musk’s money as head of his family office, didn’t immediately respond to a request for comment.

Neuralink, which incorporated in Nevada, closed a $650 million funding round in early June at a $9 billion valuation. ARK Invest, Peter Thiel’s Founders Fund, Sequoia Capital and Thrive Capital were among the investors. Neuralink said the fresh capital would help the company bring its technology to more patients and develop new devices that “deepen the connection between biological and artificial intelligence.”

Under Musk’s leadership at DOGE, the initiative took aim at government agencies that emphasized diversity, equity and inclusion (DEI). In February, for example, DOGE and Musk boasted of nixing hundreds of millions of dollars worth of funding for the Department of Education that would have gone towards DEI-related training grants.

WATCH: DOGE cuts face congressional test

DOGE cuts face congressional test. Here's a breakdown

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