Us Congress Senate Bill SB5648

Us Congress 2023-2024 Regular Session

Caption

A bill to protect the national security of the United States by imposing sanctions with respect to certain persons of the People's Republic of China and prohibiting and requiring notifications with respect to certain investments by United States persons in the People's Republic of China, and for other purposes.

Impact

If enacted, SB5648 would significantly alter the landscape of U.S.-China economic relations by creating regulatory barriers for investments by U.S. persons in various sectors. It establishes stringent guidelines regarding technology transfers and investment transactions in specified dangerous technologies that could benefit adversaries. The legislation also mandates regular reports from the Secretary of the Treasury, enhancing oversight of investment activities that may impact U.S. security interests and requiring notifications for certain categories of transactions. Such monitoring could deter U.S. investments in industries deemed sensitive under the bill.

Summary

SB5648, also known as the Comprehensive Outbound Investment National Security Act of 2024 (COINS Act), is designed to enhance the national security of the United States by imposing sanctions against certain entities and individuals linked to the People's Republic of China. The bill empowers the President to block and prohibit transactions connected to persons determined to be foreign entities contributing to national security risks. This includes broad definitions of what constitutes a 'covered foreign person' and identifies activities that could fall under sanctions, including investments in advanced technologies and military capabilities.

Contention

Notably, the bill has sparked debate about balancing economic relationships and national security interests. Proponents argue it is critical to counter Chinese influence and protect U.S. technologies from being exploited for military purposes. Conversely, critics point out the potential adverse impacts on business operations and economic ties that such restrictions could impose. Concerns also exist around the bill's possibly broad application, which might hamper legitimate business practices and innovation due to heightened regulatory scrutiny and fear of sanctions.