Bill Summary
This legislation, titled the "Protecting America From Foreign Investors Compromised by the Chinese Communist Party Act of 2020," aims to modify the criteria used by the Committee on Foreign Investment in the United States (CFIUS) when reviewing foreign investment transactions. It requires CFIUS to consider whether the foreign person involved in the transaction is connected to a foreign country that has installed information and communications technology from a foreign adversary, and if so, how it may affect national security. Additionally, the legislation calls for the annual review and update of the list of "excepted foreign states" and for a report from the President on potential alternatives to future-generation mobile telecommunications infrastructure supported by the Government of the People's Republic of China. The legislation recognizes the economic benefits of foreign investment but also acknowledges the changing national security landscape and the need to modernize CFIUS's authorities.
Possible Impacts
1. This legislation could potentially limit or restrict foreign investment in certain industries, such as telecommunications, if the Committee on Foreign Investment deems them to be connected to a foreign adversary. This could impact individuals who work in these industries and rely on foreign investment for job opportunities and economic growth.
2. The requirement for annual updates to the list of excepted foreign states could affect US businesses that have partnerships or investments with these countries, as their status as an "excepted" state could change and potentially impact their business operations.
3. The report on alternatives to future-generation mobile telecommunications infrastructure supported by the Government of the People's Republic of China could potentially affect the availability and affordability of these technologies for consumers in the US. This could also impact businesses that rely on these technologies for their operations.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6152 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6152
To require the Committee on Foreign Investment in the United States to
consider whether a foreign person that is a party to a transaction
undergoing review by the Committee is connected to a foreign country
that has installed information and communications technology designed,
developed, manufactured, or supplied by persons owned or controlled by,
or subject to the jurisdiction or direction of, a foreign adversary,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 9, 2020
Mr. Gallagher (for himself, Mr. Turner, Ms. Cheney, Mr. McCaul, Mr.
Banks, Mr. Perry, and Mr. Timmons) introduced the following bill; which
was referred to the Committee on Financial Services, and in addition to
the Committees on Foreign Affairs, and Energy and Commerce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To require the Committee on Foreign Investment in the United States to
consider whether a foreign person that is a party to a transaction
undergoing review by the Committee is connected to a foreign country
that has installed information and communications technology designed,
developed, manufactured, or supplied by persons owned or controlled by,
or subject to the jurisdiction or direction of, a foreign adversary,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting America From Foreign
Investors Compromised by the Chinese Communist Party Act of 2020''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) foreign investment provides substantial economic
benefits to the United States, including the promotion of
economic growth, productivity, competitiveness, and job
creation, thereby enhancing national security;
(2) maintaining the commitment of the United States to an
open investment policy encourages other countries to
reciprocate and helps open new foreign markets for United
States businesses;
(3) it should continue to be the policy of the United
States to enthusiastically welcome and support foreign
investment, consistent with the protection of national
security;
(4) at the same time, the national security landscape has
shifted in recent years, and so has the nature of the
investments that pose the greatest potential risk to national
security; and
(5) those shifts warranted the modernization of the
authorities of the Committee on Foreign Investment in the
United States under the Foreign Investment Risk Review
Modernization Act of 2018 (subtitle A of title XVII of Public
Law 115-232; 132 Stat. 2173).
SEC. 3. MODIFICATION OF REQUIREMENT FOR REGULATIONS DEFINING ``FOREIGN
PERSON'' FOR PURPOSES OF COVERED TRANSACTIONS.
(a) In General.--Section 721(a)(4)(E) of the Defense Production Act
of 1950 (50 U.S.C. 4565(a)(4)(E)) is amended by striking the third
sentence and inserting the following: ``Such criteria shall take into
consideration--
``(i) how a foreign person is connected to
a foreign country or foreign government;
``(ii) whether that foreign country or
foreign government has installed, or allowed
others to install, within its territory
information and communications technology
(including fifth-generation, or future-
generation, mobile telecommunications
infrastructure) that is designed, developed,
manufactured, or supplied by persons owned or
controlled by, or subject to the jurisdiction
or direction of, a foreign adversary (as
defined in Executive Order 13873 (50 U.S.C.
1701 note; relating to securing the information
and communications technology and services
supply chain));
``(iii) whether the connection described in
clause (i) may affect the national security of
the United States; and
``(iv) how the installation described in
clause (ii) may affect the national security of
the United States.''.
(b) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Committee on Foreign Investment in the
United States shall prescribe regulations to carry out the amendment
made by subsection (a).
SEC. 4. UPDATE TO LIST OF EXCEPTED FOREIGN STATES.
At least annually, the Committee on Foreign Investment in the
United States shall review and update foreign states included in the
definition of ``excepted foreign states'' as defined under section
800.218 of title 31, Code of Federal Regulations.
SEC. 5. REPORT ON ALTERNATIVES TO FUTURE-GENERATION MOBILE
TELECOMMUNICATIONS INFRASTRUCTURE SUPPORTED BY THE
GOVERNMENT OF THE PEOPLE'S REPUBLIC OF CHINA.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the President shall submit to the appropriate
congressional committees a report describing whether and how the United
States Government is coordinating with close trade and investment
partners of the United States to develop alternatives to fifth-
generation, or future-generation, mobile telecommunications
infrastructure supported by the Government of the People's Republic of
China.
(b) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Commerce, Science, and Transportation,
the Committee on Banking, Housing, and Urban Affairs, and the
Committee on Foreign Relations of the Senate; and
(2) the Committee on Energy and Commerce, the Committee on
Financial Services, and the Committee on Foreign Affairs of the
House of Representatives.
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