Foreign Investment Guardrails to Help Thwart (FIGHT) China Act
Impact
The implications of HB2246 extend to investments made by U.S. persons in China, particularly concerning national security transactions involving advanced technologies. It requires mandatory notifications for such transactions and prohibits investments in entities linked to the Non-SDN Chinese Military-Industrial Complex. This will establish a stricter regulatory framework for businesses and investors, thereby potentially limiting opportunities for economic engagement with China.
Summary
House Bill 2246, also known as the 'Foreign Investment Guardrails to Help Thwart (FIGHT) China Act', aims to enhance national security through the imposition of sanctions on designated individuals and entities from the People's Republic of China. This bill empowers the President to block transactions involving foreign persons deemed a threat to U.S. national security by restricting their property and interests in the U.S. This broad authority entails a proactive approach to safeguarding sensitive industries and technologies that are vital to national security.
Contention
Debate surrounding HB2246 highlights varying perspectives on managing foreign investments and securing national interests. Proponents argue for the necessity of the bill in light of increasing geopolitical tensions with China, emphasizing the importance of safeguarding critical technologies from adversarial influence. Conversely, opponents raise concerns about overreach, suggesting that heavy restrictions may hinder legitimate business operations and stifle economic collaboration, impacting innovation and growth within the tech sector.
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.
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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.
Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including whether executive-level employees, senior directors, or board members are members of the Communist Party of China; interactions with the party; expenditures in China; expenditures in the United States regarding operations and lobbying activities; and the ability of the Public Company Accounting Oversight Board to audit the issuer. Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company ownership information, party involvement, whether the company participates in specified Chinese policies or activities, any ties to U.S.-sanctioned individuals, and the types of products or services produced by the company.