WASHINGTON, D.C. — U.S. Senator Angus King (I-Maine) is asking for congressional leaders to stop world adversaries, just like the People’s Republic of China (PRC), from buying delicate U.S. applied sciences. In a letter to the chairmen and rating members of each the Senate and House Armed Services Committees, King and his colleagues strongly encourage the leaders to incorporate clear, daring language within the 2024 National Defense Authorization Act (NDAA) to deal with the nationwide safety risk posed by America’s delicate applied sciences with dual-use functions being acquired by China by American companies’ investments.

“There is strong bipartisan consensus in both the U.S. Senate and U.S. House of Representatives that Congress must act to address the national security threat posed by these outbound investments,” the senators wrote. “We have known for some time that U.S. companies are sending capital, intellectual property, and innovation to the PRC, fueling its advance in dual-use critical technology areas. To safeguard our national security, the U.S. needs visibility into our vulnerabilities by requiring, at a minimum, notification of sensitive investments by U.S. firms in these countries.”

“None of the tools currently at the government’s disposal, however, fully address the specific risk posed by the transfer of U.S. capital and know-how to our adversaries,” the senators added. “In order to protect our interests, we need to evaluate the full scope of our vulnerabilities and use the data and insight provided by outbound investment screening to implement tools that ensure sensitive technologies with dual-use applications are not further ceded to adversaries.”

On the Senate facet, the letter is signed by Senators Dan Sullivan (R-Alaska), Jacky Rosen (D-Nev.), Marco Rubio (R-Fla.), Rick Scott (R-Fla.), Joni Ernst (R-Iowa), Kevin Cramer (R-N.D.), Debbie Stabenow (D-Mich.), John Fetterman (D-Penn.), Tommy Tuberville (R-Ala.), Tammy Baldwin (D-Wisc.), Gary Peters (D-Mich.), Michael Bennet (D-Colo.), Bob Casey (D-Penn.), John Cornyn (R-Texas), Pete Ricketts (R-Neb.), Jeanne Shaheen (D-N.H.), Chris Van Hollen (D-M.D.) and Mark Kelly (D-Ariz.).

A member of the Senate Select Committee on Intelligence and the Senate Armed Services Committee, Senator King is acknowledged as a considerate voice on nationwide safety and international coverage points. In addition, Senator King is seen as a nationwide chief in preventing threats from know-how, having served because the Co-Chair of the Cyberspace Solarium Commission — which has had dozens of suggestions turn into legislation. Most not too long ago, he launched bipartisan legislation to raised consider nationwide safety threats posed by China. Earlier within the 12 months, he launched bipartisan legislation to determine a fee tasked with growing a complete whole-of-government method for the way the United States ought to deal with the financial, safety and diplomatic challenges posed by China.

The letter could be discovered here and under.

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Dear Chairman Reed, Ranking Member Wicker, Chairman Rogers, and Ranking Member Smith:

We are deeply involved in regards to the potential nationwide safety threats posed by outbound capital flows and data switch to the United States’ adversaries, notably the People’s Republic of China (PRC). To this finish, we write urging you to make sure that language addressing outbound investments in sure sectors of international international locations of concern is included within the National Defense Authorization Act (NDAA) of 2024, and ideally strengthen the language.

On July 25, 2023, the Senate voted overwhelmingly (91-6) to incorporate Amendment No. 931 within the NDAA, which might set up an outbound funding screening program led by the U.S. Department of the Treasury in coordination with the U.S. Department of Commerce. It requires United States entities to inform the U.S. authorities of investments and actions in particular know-how sectors in international locations of concern. 

There is powerful bipartisan consensus in each the U.S. Senate and U.S. House of Representatives that Congress should act to deal with the nationwide safety risk posed by these outbound investments. The Administration can be targeted on the difficulty. On August 9, 2023, the President issued an Executive Order (E.O. 14105) titled Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern, looking for to take care of this similar problem set. In reality, the E.O. goes past notification to contemplate prohibition of funding in some sectors.    

We have recognized for a while that U.S. firms are sending capital, mental property, and innovation to the PRC, fueling its advance in dual-use important know-how areas.  To safeguard our nationwide safety, the U.S. wants visibility into our vulnerabilities by requiring, at a minimal, notification of delicate investments by U.S. corporations in these international locations. 

Outbound funding screening will fill a niche in our skill to fight this rising nationwide safety risk. This isn’t novel, nor a risk to America’s outwardly dealing with financial system.  The United States has deployed plenty of instruments to guard towards know-how theft by our adversaries, together with export controls, sanctions, and inbound international funding screening, even because it stays one of the open economies on this planet. 

None of the instruments at present on the authorities’s disposal, nonetheless, absolutely deal with the precise danger posed by the switch of U.S. capital and know-how to our adversaries. In order to guard our pursuits, we have to consider the complete scope of our vulnerabilities and use the information and perception offered by outbound funding screening to implement instruments that guarantee delicate applied sciences with dual-use functions will not be additional ceded to adversaries.

The very last thing we needs to be doing is facilitating know-how that might sooner or later be used towards us, whether or not by espionage at dwelling or towards our servicemen and ladies deployed to combat for his or her nation.  

In the curiosity of U.S. nationwide safety, we urge you to make sure that strong language addressing the risk posed by outbound investments in international locations just like the PRC is included within the 2024 NDAA that goes to the President for his signature. 

Sincerely,

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