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Oklahoma Legislature Opens China-Focused Hearings at the State Capitol

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  Published in Politics and Government on Wednesday, December 24th 2025 at 7:32 GMT by The Oklahoman

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Oklahoma Legislature Opens China‑Focused Hearings at the State Capitol

In a late‑December session that drew bipartisan attention, Oklahoma lawmakers convened a series of hearings at the state capitol to examine the breadth of Chinese influence in the state’s economy, infrastructure, and national security. The sessions, which began on December 21 and continued through December 24, were part of a broader legislative push to assess foreign investment, technology transfer, and potential espionage risks associated with Chinese entities. While the hearing itself was a procedural step, the implications—spanning from local business policy to interstate commerce—are far from procedural.

Why the Hearing?

Oklahoma’s growing economy and strategic position as a transportation hub have made it a target for foreign investment, particularly from Chinese companies looking to expand their presence in the U.S. In recent years, Chinese firms have acquired stakes in Oklahoma’s energy, agriculture, and telecommunications sectors. According to a report by the Oklahoma Department of Commerce, Chinese investment in the state surpassed $3.5 billion in 2024, a 25 % jump over the previous year.

Simultaneously, concerns about national security—especially after the U.S. federal government tightened restrictions on Chinese technology firms under the National Defense Authorization Act (NDAA) and the CHIPS and Science Act—prompted state officials to scrutinize domestic exposure. “We are trying to protect our citizens and our economy from undue influence,” said Rep. Michelle Hernandez (R‑Tulsa), one of the hearing’s primary sponsors. “The federal laws give us a framework, but Oklahoma needs its own safeguards.”

Key Themes Discussed

1. Foreign Investment Screening
   The hearing focused on whether Oklahoma should adopt a formal screening process for foreign direct investment (FDI). Proposals included a review panel that would assess the national security implications of each investment, mirroring the federal Committee on Foreign Investment in the United States (CFIUS) model.

2. Technology and Cybersecurity
   A prominent concern was the potential for Chinese firms to embed surveillance capabilities in critical infrastructure. Testimony from the Oklahoma Office of the Information Technology Security Officer highlighted vulnerabilities in the state’s broadband network and suggested a moratorium on contracts with companies that have known ties to the Chinese government.

3. Energy and Natural Resources
   China’s growing appetite for natural gas and oil has led to increased investment in Oklahoma’s oil fields. Several industry leaders testified about the benefits of foreign capital for drilling operations but warned of the risks associated with data sharing and supply chain dependencies.

4. Education and Cultural Exchanges
   While not the primary focus, the hearing also touched on educational programs, scholarships, and cultural exchange initiatives. The state’s education committee expressed concern that some exchanges might serve as soft‑power tools for the Chinese government.

Voices on Stage

Legislative Proposals on the Table

1. Oklahoma Foreign Investment Oversight Act (HB 2024)
   This bill would establish a committee within the State Commerce Department to evaluate FDI proposals for national security risks. The committee would have the power to recommend delays, conditions, or outright rejections.

2. Oklahoma Technology Security Standard (SB 147)
   SB 147 proposes a licensing requirement for all telecommunications equipment and data‑center hardware that originates outside the United States, specifically targeting manufacturers linked to the Chinese government.

3. Oklahoma Data Sovereignty Act
   A bipartisan effort to mandate that data collected by state agencies be stored on servers physically located within the state, with a preference for U.S. manufacturers.

4. Public-Private Partnership (PPP) Transparency Act
   Requires full disclosure of any foreign ownership stakes in PPP projects, especially those involving critical infrastructure such as highways, bridges, and water treatment plants.

Outcomes and Next Steps

While no bill received a final vote before the legislature adjourned on December 24, several actions were taken:

• Funding for a Statewide Survey – A $200,000 appropriation was earmarked for a comprehensive audit of Chinese investment across Oklahoma, to be completed by Q3 2026.
• Committee Hearings – The Commerce and Economic Development Committee will hold follow‑up hearings in early 2026 to refine the bill language.
• Inter‑agency Task Force – The Governor announced the creation of a task force that will coordinate between the Office of the Governor, the Department of Commerce, the Department of Technology, and the Department of Homeland Security to align state policy with federal standards.
• Public Comment Period – An online portal will open on January 15, 2026, allowing residents and businesses to submit input on the proposed legislation.

Further Context and Resources

• Oklahoma Legislature’s Bill Tracking – The full text of HB 2024 and SB 147 can be accessed through the state’s legislative website: www.oklegislature.gov (links included in the original article).
• Oklahoma Department of Commerce – Foreign Investment Report (2024) – Provides data on foreign investment flows and economic impact.
• U.S. Department of Homeland Security – CFIUS Guidelines – The federal framework that many state-level screenings seek to emulate.
• National Security Commission on Foreign Investment – Offers best‑practice guidance for state‑level oversight.

Bottom Line

The December hearings underscore Oklahoma’s growing awareness of the delicate balance between welcoming foreign capital and safeguarding national interests. By engaging a diverse panel of experts—from industry CEOs to cybersecurity officials—the state has taken a cautious yet proactive stance. The proposed legislation, while still in its infancy, signals a shift toward more structured oversight of foreign investment, particularly from China. As the state prepares to roll out more robust screening mechanisms, its policy will likely serve as a model for other states grappling with similar concerns in an increasingly interconnected world.