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Explanation of H.R. 7007 - Compensation for Americans Act of 2020
Explanation of H.R. 7007 - Compensation for Americans Act of 2020
This bill, introduced in the U.S. House of Representatives in 2020, aims to negotiate a compensation agreement between the United States and China for the spread of the COVID-19 virus. Here's a simplified overview of the bill:
Purpose of the Bill
The bill's main goal is to establish negotiations between the United States and China to agree on compensation for damages caused by the COVID-19 pandemic. It claims that China's actions and misinformation in the early stages contributed significantly to the global spread of the virus.
Main Components
- Coronavirus Compensation Fund: A fund would be set up to collect any agreed-upon compensation from China or money from frozen Chinese assets in the U.S.
- Freezing Assets: The bill authorizes the U.S. President to freeze Chinese assets in the U.S. to compel China into negotiating compensation.
- Impact on U.S.–Chinese Relations: The bill includes provisions to restrict Chinese companies' ability to invest in or acquire U.S. companies and encourages other countries to seek compensation from China too.
- Supply Chain Integrity: It calls for reports on reducing U.S. dependency on Chinese manufacturing, in sectors such as pharmaceuticals and technology.
- Sanctions and Export Controls: The bill allows for imposing sanctions on Chinese officials if China fails to agree to the compensation, and controls exports of sensitive technology to China.
- Prohibition of Investments: U.S. federal funds would be restricted from investing in Chinese companies through certain retirement accounts.
- Regulation and Transparency of Chinese Listings: The bill seeks to ensure greater transparency and regulatory oversight of Chinese companies listed on U.S. stock exchanges.
Arguments and Justification
The bill asserts that if China had acted more transparently and promptly, the widespread impact of COVID-19 might have been mitigated, substantially reducing the number of cases and deaths worldwide. It calls for accountability and ensures that China's economic practices are in line with developed country standards rather than those of developing countries.
Conclusion
This bill represents an attempt by the U.S. to hold China financially accountable for its role in the COVID-19 pandemic through diplomatic negotiation, economic measures, and increased regulatory oversight.
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