Initiative on foreign investment screening

(a)

Findings

Congress finds the following:(1)Foreign investment can be beneficial to economic growth, but also presents risks to national security if critical infrastructure, sensitive technology, or supply chains are compromised.(2)Many foreign countries lack robust regulatory frameworks to screen foreign investments for national security risks.(3)Strengthening investment screening mechanisms worldwide supports United States national security by enhancing the resilience of allies and partner countries against malign foreign influence.(4)The United States has expertise in investment screening that can be leveraged to assist allies and partner countries.(b)

Initiative on foreign investment screening

(1)

Establishment

Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall establish the Initiative on Foreign Investment Screening (in this section referred to as the Initiative).(2)

Coordination

The Secretary shall coordinate with the heads of other United States Government agencies, as appropriate, in the establishment and activities of the Initiative.(3)

Designated official

The Secretary shall designate the Under Secretary for Economic Affairs or a designee of the Under Secretary to lead the initiative.(4)

Duties

The Initiative shall—(A)provide technical assistance, training, and advisory services to foreign countries regarding best practices for screening foreign investments for national security risks to such countries;(B)facilitate coordination among United States Government agencies, the private sector, partner countries, and civil society to promote security standards for foreign investment;(C)support the development and implementation of foreign investment screening mechanisms in partner countries through regulatory guidance and information sharing;(D)assess the progress of partner countries in establishing robust foreign investment screening mechanisms; and(E)conduct outreach and capacity-building efforts to enhance global awareness of the national security risks of foreign investment.(5)

Termination

The Initiative shall terminate on the date that is 5 years after the date on which the Initiative is established under paragraph (1).(6)

Annual report to Congress

Not later than one year after the date of the enactment of this Act, and annually thereafter for 3 years, the Secretary shall submit to the appropriate congressional committees a report on the activities of the Initiative, including—(A)a summary of technical assistance and training provided to foreign countries;(B)an assessment of progress made by foreign countries in implementing foreign investment screening mechanisms;(C)an evaluation of emerging national security risks related to foreign investment;(D)recommendations for further United States engagement with foreign countries regarding screening foreign investments for national security risks to such countries; and(E)for each country determined by the Secretary to be a partner country pursuant to subsection (c)(4)(C) during the year preceding submission of the report, a detailed description of the reasons for such determination.(c)

Definitions

In this section:(1)

Appropriate congressional committees

The term appropriate congressional committees means the following:(A)The Committee on Foreign Affairs of the House of Representatives.(B)The Committee on Foreign Relations of the Senate.(2)

Foreign investment

The term foreign investment means direct or indirect investment in the economy of a country by—(A)an individual who is not a citizen or national of such country; or(B)an entity that is not organized under the laws of such country or any jurisdiction within such country.(3)

National security risk

The term national security risk means a risk related to critical infrastructure, sensitive technology, supply chain vulnerabilities, or malign foreign influence.(4)

Partner country

The term partner country means the following:(A)A country with which the United States has in effect a bilateral or multilateral free trade agreement.(B)A country with which the United States has in effect a treaty for mutual defense.(C)Any other country or jurisdiction, as determined by the Secretary.