China’s Threat to National Security; What Will Congress Do?

Foreign governments with interests adverse to the U.S. are stockpiling vast sums of money and buying out our country for strategic purposes that threaten national security.

This alarming reality has prompted a congressional hearing today about the threats posed by China’s $200 billion government controlled sovereign wealth fund.

From Businessweek:

Several congressional Democrats and academics on Thursday will warn that investment by China’s government-run funds carries national security risks.

….

“What we’re seeing is not merely private foreign investment — it is foreign government investment in our infrastructure and banking system”- Senator James Webb, D-Va

Using investments against American interests isn’t new; in fact China threatened America recently with similar action: In October 2008, Chinese officials threatened to liquidate their vast holdings of foreign reserves- $1.33 trillion- to counteract congressional pressure to revalue their currency.

This threat was called their ‘nuclear option’ because it would likely send the U.S. economy into an inflationary tailspin.

Do we really want a country that threatened the ‘nuclear option’ against us investing in our country?

This hearing and the potential developments that come from it will be one to keep on eye on. Maybe congress will actually adopt some real solutions to strengthen our manufacturing ability, correct our debts and protect us from malevolent foreign investments.

For the sake of the country, I hope they do.