AUSTIN – U.S. Senators John Cornyn (R-TX), Catherine Cortez Masto (D-NV), Dan Sullivan (R-AK), Chuck Schumer (D-NY), Pete Ricketts (R-NE), Andy Kim (D-NJ), Dave McCormick (R-PA), and Michael Bennet (D-CO), along with Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), released the following statements after their outbound investment measures to safeguard the United States’ national security against threats posed by countries of concern like China, Russia, and Iran by prohibiting and requiring notification of U.S. investments in certain technologies in such countries, was signed into law by President Trump as part of the National Defense Authorization Act (NDAA):

“The need to address capital flowing from the U.S. to countries of concern was realized during the first Trump administration, and my legislation presents a generational opportunity to confront the threats China, Iran, North Korea and others pose to our national and economic security,” said Sen. Cornyn. “This landmark legislation will prohibit and require notification of U.S. investments in certain technologies in countries of concern, ensuring American ingenuity, innovation, and investment do not end up in the hands of adversaries like the Chinese Communist Party to be weaponized against us. I am grateful to colleagues past and present for their contributions to this effort, and I appreciate President Trump signing it into law as part of the annual defense bill.” 

“I’m glad to see this critical bill I worked on alongside Senator Cornyn to protect our national security signed into law,” said Senator Cortez Masto. “The future of our national security is reliant on making sure we remain ahead of our adversaries in the race to develop cutting-edge technologies like AI and semiconductors, and this law will help ensure that American investments do not go toward helping Communist China develop these technologies.”

“This legislation takes a strong step in providing the Trump administration with the tools it needs to protect our national economic security. As Americans, we benefit immensely from our free markets and open investment environment. But we must ensure that we are not fueling the Chinese Communist Party’s efforts to undermine our military strength and national security,” said Senate Banking Committee Chairman Scott.

“This is an important step toward ensuring the United States remains the world’s leader in advanced technology. Our bipartisan bill will help ensure that we develop the most sensitive and cutting-edge technology here in America rather than supercharge its development in countries that do not share our values. I’ll keep fighting to protect our economic and national security from threats posed by China,” said Ranking Member Warren.

“Our military has long maintained a strong innovative and technological advantage over the Chinese Communist Party, but that advantage is eroded when American financial institutions invest in CCP-controlled companies developing technologies that could hand the future of warfare to America’s adversaries,” said Sen. Sullivan. “It is a shame Congress has to step in to instill some sense of patriotism into Wall Street, but our national security interests demand it. I applaud Senator Cornyn for leading this critically important legislation to make Americans safer at home and to maintain an arsenal of freedom that gives our men and women in uniform the edge they need to defend our interests around the world.”

“With the inclusion of Outbound provisions in the NDAA, the Senate has maintained its steadfast commitment to stopping the Chinese Communist Party’s development of advanced technology that threaten America’s national security. It is vital that we continue to prevent the harmful flow of U.S. investment into China for the development of technology like semiconductions, AI, and quantum computing,” said Democrat Leader Schumer. “I am proud to have championed this legislation that will help to protect our national security and ensure that the United States maintains a competitive edge in the critical technologies our military relies on.”

“American capital shouldn’t subsidize the growth of Communist China’s military and surveillance state,” said Sen. Ricketts. “The FIGHT China Act will address national security threats. It will protect American capital, intellectual property, and innovation from supporting Communist China’s malign ambitions.”

“Passing the FIGHT China Act into law will give us a critical leg up against competitors in the development of cutting-edge technologies and will help us better protect our nation’s security,” said Sen. Kim. “The successful bipartisan effort speaks to how vital it is that we ensure Americans’ investments do not bolster our competitors’ ability to threaten us.”

“China’s growing influence in emerging technologies poses a serious threat to our national and economic security,” said Sen. McCormick. “I’m pleased to see this commonsense legislation included in the NDAA and headed to the President’s desk. It will help prevent U.S. investment from supporting the Chinese Communist Party’s military modernization in artificial intelligence and advanced manufacturing.”

“As China backs Russia’s war against Ukraine, hacks U.S. infrastructure, and threatens our allies and partners across the Indo-Pacific, we must prevent U.S. investments from fueling China’s development of advanced technologies with potential military uses,” said Sen. Bennet. “This important legislation will protect U.S. national security by screening and blocking these investments. I’m glad to see it become law.”

The legislation is also cosponsored by Senators Jim Banks (R-IN), Elissa Slotkin (D-MI), Bill Hagerty (R-TN), and John Fetterman (D-PA).

Background:

Building on Sen. Cornyn’s previous efforts to increase transparency and prohibit investments by American entities in sensitive technologies in China, and in conjunction with the Trump administration’s America First Investment Policy, the outbound investment measures included in the conferenced National Defense Authorization Act (NDAA) would permit the Secretary of the Treasury to require notification of or prohibit U.S. investments in certain technologies in countries of concern, including:

• The People’s Republic of China (PRC);
• Cuba;
• Iran;
• North Korea;
• Russia;
• And the Maduro Regime.

Notifiable technology includes semiconductor technology and microelectronics, artificial intelligence (AI) systems, quantum information technologies, high-performance computing, and supercomputing hypersonic systems. Prohibited technology includes advanced semiconductor technology and microelectronics, artificial intelligence systems, quantum information technologies, high-performance computing and supercomputing hypersonic systems.

Lastly, the legislation would permit the Secretary of the Treasury to impose sanctions under the International Emergency Economic Powers Act (IEEPA) against PRC entities that engage with the PRC military and intelligence sectors.