New Senate Bills Would Expand CFIUS Role, Restrict US Investment in China
Sen. Bob Casey, D-Pa., introduced legislation this week that would limit American outbound investment in Chinese technology and give the Committee on Foreign Investment in the U.S. more power to police Chinese investment in the U.S.
His American Industry and Technology Protection Act would expand CFIUS authority to review all Chinese transactions involving emerging critical technology, including "novel technologies that may have implications for U.S. national security down the line." The bill also would expand CFIUS authority to review and mitigate transactions that would impair U.S. economic and technological competitiveness in “foundational industries” such as steelmaking, petrochemicals and energy technology. CFIUS currently focuses on reviewing the national security risks of certain investments in U.S. industries and real estate.
Casey’s Stop Investing in Chinese Innovation and Aggression Act would prohibit U.S. firms from investing in technology in “countries of concern,” particularly China, and would require U.S. entities, including corporations, to notify the Treasury Department of certain investments in those countries. A similar notification provision was included in the Senate version of the FY 2024 National Defense Authorization Act but didn't make it into the final NDAA (see 2312070054).
A third new bill offered by Casey, the Disclosing Investments in Foreign Adversaries Act, would require private funds to annually disclose assets invested in each country of concern.
The three bills are included in a five-bill, 43-page package titled the Combat Chinese Economic Aggression Act, which was referred to the Senate Banking Committee. The other two bills would limit the amount of content that can come from non-market economies, and would direct the National Counterintelligence and Security Center to help U.S. ports and shipping companies understand the risks of using Chinese technology.