Senate Passes Measure Requiring U.S. Investors to Report Stakes in Chinese Tech Firms, Other Countries of Concern
The Senate has approved a new measure that will require U.S. investors to report their stakes in Chinese tech companies and other countries of concern to the Treasury Department. The measure, passed in a 91-6 vote on Tuesday, aims to increase transparency and address national security vulnerabilities. The move also includes reporting investments to countries like Russia, North Korea, and Iran.
The bipartisan measure, authored by Senators Bob Casey and John Cornyn, was included as an amendment to the National Defense Authorization Act (NDAA), a bill currently under negotiation. The senators argue that when American companies invest in technology in countries like China and Russia, there is a risk of their capital, intellectual property, and innovation falling into the wrong hands and being weaponized against the United States.
Senator Cornyn stated, This bill would increase the visibility of these investments, which will help the U.S. gather the information needed to better evaluate our national security vulnerabilities, confront threats from our adversaries, and remain competitive on the global stage.
President Biden is also expected to introduce new regulations through an executive order that will restrict certain investments in Chinese tech sectors such as artificial intelligence, hypersonics, quantum science, satellite-based communications, and semiconductors.
The issue of how to approach China has gained bipartisan support in Washington, D.C., as lawmakers recognize the challenges of competing with a communist government that does not abide by the rules. Senator Casey emphasized that the Chinese government employs espionage tactics and exploits the United States’ open innovation to advance its own capabilities. In 2020 alone, U.S. companies’ capital investment in Chinese artificial intelligence reportedly exceeded $200 billion.
While the Senate has passed this measure, the final version of the NDAA will be determined later this year when the House and Senate reconcile their differences. The House has already passed its version of the defense spending bill.
In addition to the measure regarding Chinese tech firms, the Senate passed another amendment on Tuesday that requires federal oversight of foreign purchases of farmland in the U.S. This amendment also restricts the purchase of U.S. farmland by Russia, Iran, China, and North Korea in certain cases.
The Senate’s actions reflect growing concerns about national security risks posed by investments in strategic sectors and the need for increased oversight and transparency. The move demonstrates a bipartisan effort to address these concerns and protect U.S. interests in an increasingly competitive global landscape.
