On December 24, 2024, U.S. Representatives John Moolenaar (R-MI) and Andy Barr (R-KY) introduced a bill aimed at restricting American investments in China. The legislation, known as the Comprehensive Outbound Investment National Security (COINS) Act, seeks to establish guidelines to prevent U.S. funds from being used in sectors critical to China's military and economic development.

Senators John Cornyn (R-TX) and Tim Scott (R-SC) have introduced a companion bill in the Senate. Senator Cornyn has been advocating for restrictions on outbound investments to China since 2016.

Chairman Moolenaar stated, "Every American has the right to expect their savings and retirement funds to be invested responsibly, and not be used by the Chinese Communist Party to build weapons that threaten the United States." He emphasized the need to stop channeling billions of dollars into Chinese companies blacklisted by the U.S. government.

Congressman Barr added, "China’s aggressive ambitions and actions require a decisive and strategic response." He described the legislation as a framework for protecting American innovation and strengthening national security.

The COINS Act was inspired by recommendations from a report titled "Reset, Prevent, Build: A Strategy to Win America’s Economic Competition with the CCP," published by the House Select Committee on the Chinese Communist Party last year. This report outlined strategies for addressing problematic capital investments into China.

The Select Committee's investigations revealed significant U.S. venture capital investments in AI companies supporting China's human rights abuses or military modernization. It also highlighted passive investments facilitated by asset managers into PRC companies involved in similar activities.

The findings underscore what proponents see as an urgent need for legislative action like that proposed in the COINS Act.