Proposed rule comes at urging of Senator Casey, lead sponsor of Outbound Investment Transparency Act
Casey is leading voice in Congress to screen U.S. investments in national security sectors in countries like China
Washington, D.C. - Today, U.S. Senator Bob Casey (D-PA) released the following statement on the Department of Treasury releasing a proposed rule on U.S. investments in national security sectors that are made in countries of concern, including the People’s Republic of 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.
“This proposed rule is an important step to protect U.S. technology and expertise from falling into the hands of the Chinese Community Party. When we allow American companies to invest in sectors like AI and semiconductors in China, we’re putting our national security and our economic future at risk,” said Senator Casey. “The Administration’s proposed rule is a good start, but I will keep pushing to pass my bipartisan legislation to make permanent an outbound investment screening program.”
Senator Casey is one of the leading voices in Congress on the risks posed by U.S. national security investments in China. Along with Senator John Cornyn (R-TX), he first introduced outbound investment screening legislation, the National Critical Capabilities Defense Act, in May 2021. Senators Casey and Cornyn have been working to garner bipartisan and bicameral support for their bill. The bill passed as amendment to National Defense Authorization Act by vote of 91-6 in July 2023, but House Republican leadership ultimately dropped the Casey’s bill from the final NDAA legislation.
Treasury’s proposed rule implements the President’s executive order, issued in August 2023, at Senator Casey’s urging. Senator Casey also secured funding in the FY23 federal spending bill for the Department of Commerce and the Department of the Treasury to implement this rule and establish an outbound investment screening program. The proposed rule would prohibit U.S. investments in sectors critical to national security, including artificial intelligence and certain quantum computing and semiconductor technologies. Additionally, the proposed rule requires notification of other U.S. investments that may contribute to national security.
