Bill Summary
The "Protecting American Capital Act of 2025" mandates the Secretary of the Treasury to produce an annual report detailing United States portfolio investments in the People's Republic of China (PRC). This report will begin one year after the enactment of the legislation and will encompass investments made by U.S. individuals and entities, including those routed through other countries.
Key elements of the report will include:
1. Information on the types of U.S. investors, specifically identifying significant contributors, such as state pension funds and those investing over 2% of the total investments in a given year.
2. Data on the Chinese entities receiving these investments, focusing on sectors like housing, entities under U.S. sanctions, and those receiving over $100 million in investments.
The first report will cover the period from January 1, 2008, to the date of the report, while subsequent reports will cover the preceding year. The legislation aims to enhance transparency regarding American investments in China and assess their implications.
Possible Impacts
The "Protecting American Capital Act of 2025" could have several implications for individuals and organizations. Here are three examples of how this legislation could affect people:
1. **Increased Transparency for Investors**: The requirement for an annual report on U.S. portfolio investments in China means that investors, including individuals and institutional investors like pension funds, will have access to detailed information about where their money is being invested. This transparency will enable investors to make more informed decisions about their portfolios, potentially influencing their investment strategies and risk assessments related to investments in China.
2. **Impact on U.S. Pension Funds**: State pension funds and other institutional investors that invest in Chinese entities may find themselves scrutinized under the new reporting requirements. This could lead to increased pressure from stakeholders to reconsider or adjust their investment strategies based on the report's findings, particularly if certain Chinese entities are linked to sectors or activities that may be controversial or subject to U.S. sanctions. Consequently, this might affect the returns on retirement savings for individuals who rely on these pension funds.
3. **Regulatory Compliance and Investment Decisions**: U.S. businesses and investors making significant investments in China, especially those exceeding $100 million or involving sanctioned entities, will need to navigate a more complex regulatory environment. The annual reporting requirement could lead to changes in how businesses approach their investments; they may need to conduct more due diligence or alter their investment strategies to ensure compliance with U.S. regulations. This could affect job creation, business growth, and overall economic engagement between the U.S. and China, ultimately impacting employees and consumers.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1360 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1360
To require an annual report on United States portfolio investments in
the People's Republic of China, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 8, 2025
Mr. Scott of Florida (for himself and Mr. Van Hollen) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require an annual report on United States portfolio investments in
the People's Republic of China, 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 American Capital Act of
2025''.
SEC. 2. ANNUAL REPORT ON UNITED STATES PORTFOLIO INVESTMENTS IN THE
PEOPLE'S REPUBLIC OF CHINA.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the Secretary of the
Treasury shall submit to Congress a report on portfolio investments by
United States persons in the People's Republic of China, including such
investments routed through a jurisdiction outside the United States.
(b) Elements.--Each report required by subsection (a) shall include
an assessment of the involvement of the following in portfolio
investments in the People's Republic of China:
(1) United States persons making such investments,
including an assessment of--
(A) the types of United States persons making such
investments, including State pension funds; and
(B) United States persons making more than 2
percent of the total of such investments in a year.
(2) Chinese entities receiving such investments, including
an assessment of--
(A) such entities in individual sectors of the
economic of the People's Republic of China, including
the housing sector;
(B) any Chinese entities subject to sanctions
imposed by the United States receiving such
investments; and
(C) Chinese entities that receive more than
$100,000,000 from such investments.
(c) Period Covered.--The period covered by a report required by
subsection (a) shall be--
(1) in the case of the first such report, the period
beginning on January 1, 2008, and ending on the date of the
report; and
(2) in the case of each subsequent such report, the one-
year period preceding submission of the report.
(d) Definitions.--In this section:
(1) Chinese entity.--The term ``Chinese entity'' means an
entity organized under the laws of the People's Republic of
China or otherwise subject to the jurisdiction of the
Government of the People's Republic of China.
(2) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
or
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity.
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