Lawmakers Divided on China Investment Restrictions

A bipartisan group of over 40 lawmakers is urging Congress to strengthen restrictions on outbound investments in China and other adversarial nations that could enhance China's military capabilities and pose national security threats to the United States. The lawmakers are calling for the inclusion of strong restrictions in the National Defense Authorization Act (NDAA) of 2024, emphasizing the need for outbound investment screening to prevent U.S. funds from aiding China's military modernization. They argue that current tools like export controls and sanctions do not adequately address the risks posed by the transfer of U.S. capital and know-how to adversaries. The Senate previously approved an amendment for outbound investment screening, but the NDAA stalled at the time.