President Joe Biden plans to sign an executive order restricting American companies from investing in some Chinese technologies.
According to Bloomberg, Biden will sign the order sometime in August, but the order will not come into effect until 2024.
Relatedly, the Senate agreed on Tuesday to require companies to notify the U.S. Department of the Treasury when they invest in certain Chinese technologies.
Senators passed what amounted to a toned-down version of the Outbound Investment Transparency Act, which would have placed restrictions on such investments and allowed the Treasury Department to block certain details, NBC 5 DFW reported.
The current version of the legislation, which is a proposed amendment to the National Defense Authorization Act (NDAA), covers artificial intelligence, semiconductors, satellite-based communications, and networked laser scanning systems with dual-use applications, reported Axios.
It saw strong bi-partisan support, passing 91-6, and reflected concerns held on both sides of the political aisle regarding China’s technological advancements.
Sen. John Cornyn (R-TX) — who co-authored the amendment with Sen. Bob Casey (D-PA) — said the amendment will help manage national security concerns and provide clarity for the country.
“When American companies invest in technology like semiconductors or AI in countries like China and Russia, their capital, intellectual property, and innovation can fall into the wrong hands and be weaponized against us,” Cornyn said in a statement.
“This bill would increase the visibility of these investments, which will help the U.S. gather the information needed to better evaluate our national security vulnerabilities, confront threats from our adversaries, and remain competitive on the global stage,” Cornyn added.
Before the Senate vote, Casey urged his fellow senators to support the bill.
“We need this type of outbound investment notification to understand just how much … critical technology we are transferring to our adversaries via these capital flows. With this information in hand, we can begin to take control of our economic future,” said Casey, per Reuters.
