Austin News

U.S. Senator John Cornyn has expressed approval following the inclusion of language in the government funding bill aimed at increasing transparency and prohibiting investments by American entities in sensitive technologies in China. This effort, led by Sen. Cornyn alongside Sen. Bob Casey, seeks to address concerns about investments that could potentially be used by the Chinese Communist Party.

Senator Cornyn stated, "China will stop at nothing to win the global power competition, and certain investments – including intellectual property and capital – by American companies in the country can be weaponized by the Chinese Communist Party to get ahead." He emphasized that including outbound investment language in the bill is a necessary measure to protect American innovation from exploitation and maintain U.S. dominance globally.

The provisions outlined in this year's government funding agreement grant authority to impose sanctions on any People's Republic of China (PRC) entity involved significantly with military and intelligence sectors. Additionally, it allows for restrictions on U.S. investments in certain sensitive technologies and mandates annual reporting to Congress on covered investments.

Further steps include directing the Secretary of Treasury to engage with partner countries to establish similar outbound investment regimes, as well as setting up a notification system for technologies not prohibited but still under scrutiny.

Sens. Cornyn and Casey had previously introduced the Outbound Investment Transparency Act, which was passed by the Senate last year. This act requires U.S. entities to notify the Department of Treasury about various investments in sensitive technologies within countries considered concerning.