Casey applauds new rule to screen the U.S. investments in national security sectors in countries like China
As lead sponsor of Outbound Investment Transparency Act, Casey has been fighting to combat China’s economic aggression
Washington, D.C. – Today, U.S. Senator Bob Casey (D-PA) applauded the Biden Administration’s final rule to screen critical U.S. investments in countries of concern, including China. As a lead sponsor of the bipartisan Outbound Investment Transparency Act, Casey has been pushing for congressional and executive action so the U.S. can better understand the risks of allowing foreign competitors to gain access to technology and know-how in national security sectors.
“When we allow American businesses to invest in Chinese sectors like AI and semiconductors, we’re putting our national security and our economic future at risk. This rule is an important step to protect U.S. technology and expertise from falling into the hands of the Chinese Communist Party,” said Senator Casey. “This rule is a good start and I will keep fighting to pass my bipartisan legislation to make permanent an outbound investment screening program.”
The rules announced today implement an August 2023 Executive Order on outbound investment which declared that certain U.S. company investments in critical technologies is a national emergency. The executive order, and today’s rules, establish a new program to prohibit certain investments and the transfer of other tangible benefits in specific types of advanced semiconductor, quantum, and AI technologies. The rules will impose penalties on companies that knowingly fail to comply and continue to seek ways to transfer American technology the Chinese Communist party. Today’s release of implementing rules is the culmination of nearly four years of bipartisan effort by Senator Casey to establish an outbound investment screening program.
Senator Casey is one of the leading voices in Congress sounding the alarm on the risks posed by U.S. national security investments in China. He has led bipartisan legislation to give the U.S. insight into investments in national security sectors from going to countries of concern, including China. His Outbound Investment Transparency Act, cosponsored by Senator John Cornyn (R-TX), passed the Senate as an amendment to the 2023 National Defense Authorization Act (NDAA) by a vote of 91-6, but House Republican leadership ultimately dropped Casey’s bill from the final legislation. At the same time, Casey pushed the Biden Administration to take executive action to screen outbound investments in critical sectors in countries of concern. The Department of Treasury announced the proposed rule in June.
In September 2024, Senator Casey again secured key provisions from his legislation to screen critical U.S. investments in countries of concern in the Senate’s NDAA bill. This would give the U.S. visibility into vulnerabilities and risks posed when governments of countries such as China have access to American technology and know-how in national security sectors. The industries included under the bill are: advanced semiconductors and microelectronics, artificial intelligence, quantum information science and technology, hypersonics, satellite-based communications, and LiDAR remote sensing technology with dual-use applications. The Senate is expected to vote on the NDAA before the end of the year. Additionally, Senator Casey introduced comprehensive legislation to strengthen American competitiveness in the global economy, crack down on trade cheating, and protect against economic and cybersecurity threats from China. The Combat Chinese Economic Aggression Act would strengthen U.S. manufacturing and technology by pushing back against China and other countries of concern that seek to steal trade secrets and exert influence over American defense, manufacturing, infrastructure, telecommunications, and energy industries.
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