Congress is poised to approve bipartisan legislation that would lead to foreign investments made by American companies being screened when adversaries of the United States are involved.
According to a Wall Street Journal report, the measure would help bolster U.S. competitiveness with China by requiring that foreign investments be disclosed and allow the executive branch to block any investments seen as a national security threat. U.S. Rep. Rosa DeLauro (D-CT) took to social media to tout the proposal.
“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,” she said in a post on Twitter. “Today, I have joined my colleagues in releasing a bipartisan and bicameral proposal that will safeguard our supply chains from countries of concern, like China."
In a statement on DeLauro’s website, Sen. Bob Casey and Sen. John Cornyn (R-Texas) joined DeLauro, along with Rep. Bill Pascrell Jr. (D-NJ), Rep. Michael McCaul (R-Texas), Rep. Brian Fitzpatrick (R-PA) and Rep. Victoria Spartz (R-IN) on the benefits of House Resolution 4521, the Bipartisan Innovation Act.
“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,” the legislators said in the news release.
The Wall Street Journal report said that the government could block investments in a “country of concern,” especially if the investment is in sensitive areas, such as rare elements or autonomous components. The bill would have some exceptions, such as a company conducting normal business, according to the newspaper, and the goal would be cracking down on the theft of intellectual property.
Moreover, the bill also would funnel billions of dollars to the domestic production of semiconductors as well as the development of emerging technologies, according to the Wall Street Journal.
The proposal drew the ire of the U.S.-China Business Council, according to the Wall Street Journal, which said the group called it “unprecedented in 250 years of American history.”