Governor Hobbs Vetoes Bill Targeting Companies Tied To China
By Jonathan Eberle |
Governor Katie Hobbs is under fire from Republican lawmakers after vetoing a bill that aimed to block companies with ties to the People’s Republic of China from securing contracts with the State of Arizona.
The legislation, House Bill 2542, sponsored by Rep. Lupe Diaz (R-LD19), would have required companies bidding on state contracts to certify that they are not owned or controlled by the Chinese government. The bill included penalties of up to $100,000 and a five-year ban for false certifications.
Diaz, who chairs the House Land, Agriculture & Rural Affairs Committee, expressed sharp disappointment with the veto, calling it “staggering hypocrisy.”
“The bill was simple,” Diaz said in a statement. “If a company wants a contract with the State of Arizona, it must certify that it is not owned or controlled by the People’s Republic of China. Lie about it, and you face consequences.”
He added that the legislation was crafted in response to ongoing concerns about Chinese government-linked companies undermining American industries and infiltrating U.S. supply chains through surveillance-capable technology, including drones, routers, and 5G equipment.
Diaz argued that the veto contradicts recent rhetoric from the Democratic governor, who had previously criticized the legislature for not doing enough to confront foreign threats. “You can’t issue press statements about ‘getting tough on China’ while vetoing a bill that actually would,” he said.
Supporters of the bill pointed to findings from the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, which has warned about China’s economic and technological influence in the U.S. marketplace.
Diaz pledged to reintroduce the bill in the next legislative session and urged Hobbs to reconsider her position. “Vetoing this bill sends a message that Arizona is still open for business with hostile regimes,” he said. “I will not let that slide.”
HB 2542 is one of several state-level attempts across the country to restrict economic ties with China amid broader geopolitical tensions and growing scrutiny of foreign influence in public procurement and infrastructure.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.