Outbound Investment Policy: Balancing Global Opportunities and Domestic Priorities

GBA continues to engage with key members of Congress and the White House to shape potential mechanisms for screening U.S. investments into China. Amid growing bipartisan concerns about United States entities investing in strategic Chinese industries, several different proposals have been put forward to monitor, discourage and in some cases prohibit U.S. investment into China.

In the short term, GBA believes the most likely scenario is the release of a long-awaited Executive Order that would require disclosure of investments by U.S. persons and companies in certain Chinese industries, most likely advanced semiconductors, quantum computing, artificial intelligence and biotechnology. The path forward for legislation is uncertain in both the chambers but neither has immediate plans to address the issue. Senate leadership appears to be deferring to President Biden while House Republicans have not been able to negotiate a unified position between relevant committees. Some previous legislative proposals have raised concerns about scope and extraterritoriality but none of the most controversial bills have been reintroduced this year. GBA’s position on the possible EO will depend on the exact scope and definitions, which are still unknown.