Sen. John Cornyn, R-Texas, and Rep. Bob Pittenger, R-N.C., are set to unveil a new bill ratcheting up scrutiny on Chinese investments in the United States, according to a draft of the legislation and talking points obtained by CNBC and verified by congressional aides.
Such transactions are currently reviewed by the Committee on Foreign Investment in the United States – known colloquially as CFIUS – when deemed necessary in the interest of national security. The committee is comprised of nine relevant agencies that govern the financial industry.
The bill seeks to broaden the breadth of investments that would require such a review. Among the transactions included in the bill’s purview: joint ventures, minority position investments and real estate transactions near military bases. It would also beef up the national security factors the group considers, and add restrictions aimed to help the U.S. maintain a technological advantage over countries seen as posing threats.
“The reforms in the bill are laser-focused on national security concerns and represent a measured approach to the problem,” according to talking points circulated by the bill’s sponsors. “The bill recognizes the need to preserve as much certainty and predictability for investors as possible.”
The bill has been in the works for much of 2017 and is expected to be unveiled early next week. The figurehead of the inter-agency review committee, assistant secretary of the Treasury Heath Tarbert, was confirmed in late September.
Earlier this year, a drafting session took place between Cornyn, Pittenger, Treasury Secretary Steven Mnuchin, Sen. Mike Crapo of Utah and Rep. Jeb Hensarling of Texas. Treasury staff were said to weigh in on multiple versions of the draft.
—By CNBC’s Kayla Tausche. Follow her on Twitter: @KaylaTausche
