The Senate recently advanced legislation introduced by U.S. Sens. Bob Casey (D-PA) and John Cornyn (R-TX) screening domestic investments in national security sectors made in countries of concern.
Outbound Investment Transparency Act proponents indicated the legislation would give the United States visibility into vulnerabilities and risks posed when the Chinese government has access to American technology and know-how in national security sectors.
“The United States is at a crossroads; we can take control of our own future or we can let China eat our lunch,” Casey said. “The Outbound Investment Transparency Act is a strong first step to give the U.S. insight into the risks of allowing American national security technology and know-how get into the hands of our adversaries.”
Casey said the measure’s advancement demonstrates there is bipartisan consensus to meet the challenge posed by the Chinese government.
The industries included for screening under the bill are advanced semiconductors and microelectronics; artificial intelligence; quantum information science and technology; hypersonics, satellite-based communications, and networked laser scanning systems with dual-use applications, authorities noted.
“When American companies invest in technology like semiconductors or AI in countries like China and Russia, their capital, intellectual property, and innovation can fall into the wrong hands and be weaponized against us,” Cornyn said. “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.”