Congress Locks in Hard-Line China Strategy With $900B Defense Bill

Congress has locked in a confrontational approach to China that may constrain the White House for years to come. On Wednesday, the House approved a $900 billion defense authorization bill packed with provisions designed to restrict American capital flowing into Chinese military technology and to shield the U.S. from dependence on Chinese biotech firms. The bill, which now moves to the Senate, represents a deliberate congressional pivot away from the Trump administration's current posture—one focused on negotiating trade deals with Beijing rather than building long-term competitive barriers.

The defense bill's China provisions target three distinct areas. First, it would require scrutiny of American investments in Chinese sectors deemed sensitive to military advancement: quantum computing, aerospace, semiconductors, artificial intelligence. Second, it prohibits federal money from flowing to Chinese biotechnology companies deemed problematic, leaving the Office of Management and Budget to compile the actual list. Third, it dramatically increases support for Taiwan, raising security cooperation funding from $300 million to $1 billion annually and directing the Pentagon to establish joint drone and counter-drone programs with the island. The bill also backs Taiwan's bid for International Monetary Fund membership, a move that would provide financial insulation from Chinese pressure.

This congressional action arrives just two days after the White House released its national security strategy, which notably dropped the Biden-era language casting China as a strategic threat. The Trump administration's document instead emphasizes "rebalancing America's economic relationship with China," signaling the president's preference for mutually beneficial trade arrangements over sustained competition. That same week, the White House approved Nvidia's sale of advanced computer chips to China—a decision that alarmed lawmakers who view such technology transfers as strengthening Beijing's artificial intelligence capabilities.

Rep. Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party, framed the defense bill's provisions as "a serious, strategic approach to countering the Chinese Communist Party," explicitly contrasting them with White House actions. Rep. John Moolenaar, a Michigan Republican chairing the same committee, argued that American retirees and investors have long had their money used to build Chinese military and economic power. "This legislation will help bring that to an end," he said. Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies, assessed that the provisions would "build a floor under U.S. competitiveness policy—on capital, biotech, and critical tech—that will be very hard for future presidents to unwind quietly."

The investment scrutiny provision represents a bipartisan effort that has been developing for years. Previous attempts to restrict capital flows to sensitive Chinese sectors failed, notably when Tesla CEO Elon Musk opposed a spending bill last year. Musk maintains extensive business interests in China, including a Tesla gigafactory in Shanghai. This time, the provision made it into the must-pass defense authorization act, where it proved harder to block.

The biotech restrictions evolved from the failed BIOSECURE Act, which Congress attempted to pass last year. That earlier bill named specific Chinese companies, drawing criticism that it would unfairly single out firms and potentially delay clinical trials, raise drug costs, and harm innovation. The new version in the defense bill avoids naming companies directly, instead empowering the Office of Management and Budget to identify "biotechnology companies of concern." The bill also expands Pentagon investments in American biotech research, framing the restrictions as defensive measures to secure pharmaceutical supply chains and genetic information.

China's embassy in Washington swiftly condemned the bill. Spokesperson Liu Pengyu said it "kept playing up the 'China threat' narrative" and accused Congress of abusing state power to obstruct Chinese economic development and undermine bilateral relations. "China strongly deplores and firmly opposes this," Liu stated.

The Taiwan provisions sit at the center of a broader tension in Trump administration policy. The president has signaled care not to upset Beijing as he pursues trade negotiations with Chinese President Xi Jinping, who has urged Trump to handle Taiwan "with prudence," framing it as a core Chinese interest. Yet Congress is moving in the opposite direction, committing substantial resources to Taiwan's defense and financial independence. The White House's own national security strategy says the U.S. does not support unilateral changes to the Taiwan Strait status quo and should seek to prevent large-scale military conflict—but notably adds that "the American military cannot, and should not have to, do this alone," calling on Japan and South Korea to increase defense spending. What remains unclear is whether these congressional provisions will ultimately constrain Trump's negotiating room with Beijing or whether the administration will find ways to work around them.