The Wall Street Journal released a report June 14 disclosing Congress’ plan to pass a bipartisan bill that would require foreign investments by American companies be screened when it involves countries viewed as adversaries to the United States.
The bill requires disclosures of foreign investments and would give the executive branch power to block them if they were concluded a national security threat, according to the WSJ article. Additionally, the legislation provides hundreds of billions of dollars to strengthen the domestic semiconductor industry and for researching up-and-coming technology.
“For too long, the U.S. has shipped critical manufacturing jobs overseas – ceding manufacturing power critical to our economic and national security to foreign adversaries,” Rep. Rosa DeLauro, D-Conn., said in a June 13 post on Twitter.
DeLauro went on to write she had "joined (her) colleagues in releasing a bipartisan and bicameral proposal that will safeguard our supply chains from countries of concern, like China.”
“Creating an outbound investment review mechanism is a critical tool as Congress works to provide guardrails on taxpayer funds and safeguard our supply chains from countries of concern, including the People’s Republic of China,” Sens. Bob Casey, D-Pa.; John Cornyn, R-Texas; and five House members said, according to the WSJ.
The WSJ reports if a U.S. company invested in a "country of concern" or a "foreign adversary," it would be blocked by the federal government, especially for rare earth element and autonomous system sectors. Exceptions can be earned by companies engaging in an "ordinary business transaction.” One of the main issues the bill seeks to address is a situation where a U.S. company, through a joint venture, transfers knowledge or technology to Chinese partners.
According to the Ministry of Foreign Affairs for People’s Republic of China, China slammed the U.S. for potentially restricting investment access to China, arguing that doing so is antithetical to the openness that China seeks and would ultimately hurt the United States.
