US lawmakers push for fewer tax breaks to reduce reliance on China technology

On Jul 2, 2026

A growing number of US lawmakers see the tax code as a way to shift corporate America’s reliance on Chinese technology, framing economic ties as a national security risk, seen most recently in a congressman’s comments on Thursday.

Representative Nathaniel Moran said Thursday that business leaders must remember China is an “adversary”, arguing that the American business world remains trapped in a “toxic relationship” with Beijing.

Speaking at a Hudson Institute event, Moran highlighted lawmakers’ plans to deny certain tax incentives through the US tax code to discourage businesses from relying on technology from foreign adversaries.

Moran was promoting his own bill, the Deterring Adversarial Access to Americans’ Data Act, which would deny major tax breaks, such as bonus depreciation and R&D expensing, to US companies which use technology from “foreign entities of concern” that can access private American data.

“We want to incentivise people to make longer-term decisions,” Moran, a Republican from Texas, added.

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This dovetails with broader concerns raised by bipartisan congressional panels, which argue that China uses data as a strategic resource and that Washington has failed to counter Beijing’s data-collection drive.

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