On Tuesday, a bill introduced by Pennsylvania’s U.S. Sen. Bob Casey (D-PA) to screen U.S. investments in national security sectors that are part of countries of concern, like China, passed in the U.S. Senate.
The Outbound Investment Transparency Act would give more visibility into the access countries like China have to American technology and know-how in industries like advanced semiconductors and microelectronics, artificial intelligence, quantum information science and technology, hypersonics, satellite-based communications, and networked laser scanning systems with dual-use applications. U.S. Sen. John Cornyn (R-Texas) co-sponsored the bill.
“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. Today’s overwhelming vote shows that there is bipartisan consensus to meet the challenge posed by the Chinese government and I hope that this is just the start.”
First introduced in 2021, the Senators said they have been working to garner support for the bill in the years since. Casey said the legislation would help the United States understand the “risks of allowing foreign adversaries to gain access to critical capabilities and technology, as well as to design and manufacture goods that are vital to U.S. economic and national security interests.” In June, Casey made the case for his legislation during a speech in Pittsburgh as part of his vision for America’s economic future.
“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.”
The Outbound Investment Transparency Act passed as an amendment to the National Defense Authorization Act (NDAA) by a vote of 91 to 6. The Senate is expected to vote on final passage of NDAA at the end of this week.