US lawmakers demand action on outbound investments
A group of lawmakers including House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer and Republican Senator John Cornyn called for an executive order on outbound investments to China and others.
Congress is considering legislation that would give the US government new powers to block billions of U.S. investment into China. The proposal was removed from bipartisan legislation to subsidize U.S. semiconductor chip manufacturing and research in a bill approved in August.
The lawmakers, including Democrat Bill Pascrell and Republican Brian Fitzpatrick, said in a letter to Biden that as negotiations continue, our national security cannot afford to wait, and that the president should take immediate action to safeguard national security and supply chain resiliency on outbound investments to foreign adversaries. The Chinese Embassy and White House did not immediately make a statement.
Peter Harrell, the White House's national security official, said earlier this month that the Biden administration has not yet made a final decision on a potential outbound investment mechanism that regulates U.S. investments in China.
Harrell stressed that any measure targeting investments should be narrowly tailored to address gaps in existing U.S. authorities and specific national security risks.
When we give our manufacturing power and technological know-how to foreign adversaries, we are hurting our economy, our global competitiveness, American workers, industry, and national security. The lawmakers wrote that government action on this front is long overdue to address the scope and magnitude of the serious risks we face as a country.
The proposed legislation is intended to give the government greater visibility into U.S. investments. The United States could use existing authorities to stop investments or mitigate risk, and it would be mandatory to notify the government of investments that fall under the new regulations. If no action is taken, the investment can move forward.