The Outbound Investment Transparency Act is a bipartisan bill introduced by Senators Bob Casey and John Cornyn. Its primary goal is to monitor and track outbound investment activities in China. The bill suggests giving the government the power to limit investments in specific sectors that raise concerns.
This bill is in line with an upcoming executive order from the White House that aims to restrict investment in China. The executive order specifically focuses on critical technologies and industries that could potentially pose risks to U.S. national security.
These initiatives form part of a broader strategy implemented by the U.S. government to protect its national security against potential risks associated with foreign investments. Under the Trump administration, measures were taken, such as the establishment of the Committee on Foreign Investment in the United States (CFIUS), to limit foreign investments.
The Biden administration has continued these efforts, and the introduction of the Outbound Investment Transparency Act represents another step in this direction.
While there are businesses that oppose the bill, arguing that it would impede their ability to invest in China, supporters emphasize the importance of safeguarding U.S. national security. The bill is currently under consideration by the Senate, and it remains uncertain whether it will ultimately be passed or not.
