Austin News

U.S. Senators John Cornyn and Catherine Cortez Masto, along with a bipartisan group of colleagues, have introduced the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act. This legislation aims to protect U.S. national security by prohibiting and requiring notification of certain American investments in technologies within China.

Senator Cornyn emphasized the importance of this measure, stating, "The threat China poses to the United States’ national and economic security continues to grow, and we have a generational opportunity to confront it with the FIGHT China Act." He further noted that the bill would prevent American innovation from being weaponized by the Chinese Communist Party.

Senator Cortez Masto highlighted the need for the U.S. to stay ahead in developing critical technologies like AI and semiconductors. "We can and must make sure no American investments are giving the Chinese Communist Party a leg up in developing these vitally important technologies," she said.

Chairman Tim Scott underscored his support for providing tools to restrict outbound investments that could harm U.S. national security interests, while Ranking Member Elizabeth Warren called it an essential bipartisan step for addressing threats posed by such investments.

The proposed legislation targets specific areas including acquisitions, loans, joint ventures, and equity interest conversions related to sensitive technologies like advanced integrated circuits, AI models capable of high operations, quantum computers, supercomputers, hypersonic materials or components, among others.

Exemptions within the bill include transactions deemed de minimis or in national interest, investments in securities or derivatives as limited partners in funds, ancillary financial institution transactions, acquisitions outside PRC boundaries not linked to national security concerns.

Senator Schumer stressed urgency: "The United States leads the world in innovation and we must protect against the harmful flow of U.S. investment into China for development of sensitive technology."

This legislative move builds on previous efforts led by Senator Cornyn under former President Trump's administration aimed at increasing transparency around American investments in sensitive Chinese technologies.