[House Report 118-137]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-137

======================================================================
 
             GLOBAL INVESTMENT IN AMERICAN JOBS ACT OF 2023

                                _______
                                

 July 11, 2023.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 813]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 813) to direct the Secretary of Commerce, in 
coordination with the heads of other relevant Federal 
departments and agencies, to conduct an interagency review of 
and report to Congress on ways to increase the global 
competitiveness of the United States in attracting foreign 
direct investment, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Committee Action.................................................     5
Committee Votes..................................................     5
Oversight Findings and Recommendations...........................     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Congressional Budget Office Estimate.............................     7
Federal Mandates Statement.......................................     8
Statement of General Performance Goals and Objectives............     8
Duplication of Federal Programs..................................     8
Related Committee and Subcommittee Hearings......................     8
Committee Cost Estimate..........................................     9
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    10

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Global Investment in American Jobs Act 
of 2023''.

SEC. 2. SENSE OF CONGRESS.

  It is the sense of Congress that--
          (1) the ability of the United States to attract foreign 
        direct investment from responsible private-sector entities 
        based in trusted countries is directly linked to the long-term 
        economic prosperity, global competitiveness, and security of 
        the United States;
          (2) it is a top national priority to enhance the global 
        competitiveness, economic prosperity, and security of the 
        United States by--
                  (A) removing unnecessary barriers to foreign direct 
                investment from responsible private-sector entities 
                based in trusted countries and the jobs that such 
                investment creates throughout the United States;
                  (B) promoting policies to ensure the United States 
                remains the premier global destination to invest, hire, 
                innovate, provide services, and manufacture products;
                  (C) promoting policies to ensure the United States 
                remains the global leader in developing and deploying 
                cutting-edge technologies, such as self-driving vehicle 
                technology, artificial intelligence, Internet of 
                Things, quantum computing, blockchain; and
                  (D) promoting policies that maintain and expand 
                resilient supply chains and reduce the dependence of 
                the United States on supply chains from China and other 
                foreign adversaries;
          (3) maintaining the United States commitment to an open 
        investment policy with private-sector entities based in trusted 
        countries encourages other countries to reciprocate and enable 
        the United States to open new markets abroad for United States 
        companies and their products;
          (4) while foreign direct investment by responsible private-
        sector entities based in trusted countries can enhance the 
        United States economic strength, policies regarding foreign 
        direct investment should reflect security interests and should 
        not disadvantage domestic investors, companies, or the 
        workforce;
          (5) United States efforts to attract foreign direct 
        investment from responsible private-sector entities based in 
        trusted countries should be consistent with efforts to maintain 
        and improve the domestic standard-of-living, including for the 
        workforce;
          (6) as digital information becomes increasingly important to 
        the United States economy and the development of new 
        technologies and services that will be crucial to the country's 
        competitiveness in the 21st century global economy, barriers 
        including data localization and infringement of intellectual 
        property rights must be further addressed;
          (7) foreign direct investment by companies or other entities 
        owned, directed, supported, or influenced by the Chinese 
        Communist Party is a threat to United States security and 
        merits an aggressive policy framework to protect United States 
        interests, jobs, intellectual property, and security;
          (8) foreign direct investment from any source should not 
        result in the net loss of United States economic activity, 
        productive capabilities, and supply chain resilience; and
          (9) foreign direct investment from any source should 
        strengthen United States security and support United States 
        workforce, health and safety, consumer, and financial 
        standards.

SEC. 3. FOREIGN DIRECT INVESTMENT REVIEW.

  (a) Review.--The Secretary and the Comptroller General of the United 
States, in consultation with the Federal Interagency Investment Working 
Group established pursuant to Executive Order 13577 (76 Fed Reg. 35715; 
relating to establishment of the SelectUSA Initiative) and in 
consultation with the heads of other relevant agencies, shall conduct 
an interagency review of the global competitiveness of the United 
States in attracting foreign direct investment from responsible 
private-sector entities based in trusted countries and addressing key 
foreign trade barriers that firms in advanced technology sectors face 
in the global digital economy.
  (b) Specific Matters To Be Included.--The review conducted pursuant 
to subsection (a) shall include a review of the following:
          (1) The economic impact of foreign direct investment in the 
        United States, with particular focus on manufacturing, 
        services, trade (with an emphasis on digital trade), and United 
        States jobs.
          (2) Trends in global cross-border investment and data flows 
        and the underlying factors for such trends.
          (3) Federal Government policies, that facilitate foreign 
        direct investment attraction and retention from responsible 
        private-sector entities based in trusted countries.
          (4) Foreign direct investment as compared to direct 
        investment by domestic entities.
          (5) Foreign direct investment that takes the form of 
        greenfield investment as compared to foreign direct investment 
        relating to merger and acquisition activity.
          (6) The unique challenges posed by foreign direct investment, 
        particularly acquisitions, in the United States by State-owned 
        or State-backed enterprises, especially from State-directed 
        economies, including companies or other entities owned, 
        directed, supported, or influenced by the Chinese Communist 
        Party.
          (7) Specific information on the prevalence of investments 
        made by State-owned or State-backed enterprises, especially 
        from State-directed economies, including companies or other 
        entities owned, directed, supported, or influenced by the 
        Chinese Communist Party, with a particular focus on investments 
        relating to manufacturing, services, trade (with an emphasis on 
        digital trade), and jobs.
          (8) How other trusted countries are dealing with the 
        challenge, including screening for and preventing market 
        distorting investments, of State-directed and State-supported 
        investment and whether there are opportunities to work with 
        like-minded nations to address such challenge.
          (9) Ongoing Federal Government efforts to improve the 
        investment climate and facilitate greater levels of foreign 
        direct investment in the United States from responsible 
        private-sector entities based in trusted countries.
          (10) Innovative and noteworthy initiatives by State and local 
        government to attract foreign investment from responsible 
        private-sector entities based in trusted countries.
          (11) Initiatives by other countries to identify best 
        practices for increasing global competitiveness in attracting 
        foreign direct investment from responsible private-sector 
        entities based in trusted countries.
          (12) The impact that protectionist policies by other 
        countries, including forced data localization rules, forced 
        localization of production, industrial subsidies, and the 
        infringement of intellectual property rights, have on the 
        advanced technology economy of the United States and the 
        ability for United States located firms to develop innovative 
        technologies.
          (13) Other barriers to the ability of the United States to 
        compete globally in an increasingly connected and digital 
        global economy, including the use of technical barriers to 
        trade (such as country-specific standards for technology 
        products and digital services).
          (14) The adequacy of efforts by the Federal Government to 
        encourage and facilitate foreign direct investment in the 
        United States.
          (15) Efforts by the Chinese Communist Party to circumvent 
        existing laws to gain access to United States markets, foreign 
        direct investment responsible private-sector entities based in 
        trusted countries, or intellectual property.
          (16) The extent to which foreign direct investment from any 
        source, including the Chinese Communist Party, results in 
        displacement, offshoring, or outsourcing, including the impact 
        of such investment on supply chains.
  (c) Limitation.--The review conducted pursuant to subsection (a) may 
not address laws or policies relating to the Committee on Foreign 
Investment in the United States.
  (d) Public Comment.--
          (1) Review.--Not sooner than 60 days before the date on which 
        the review is commenced pursuant to subsection (a), the 
        Secretary shall publish notice of the review in the Federal 
        Register and shall provide an opportunity for public comment on 
        the matters to be covered by the review.
          (2) Report.--Not sooner than 60 days before the date on which 
        the report is submitted pursuant to subsection (e), the 
        Secretary shall publish the proposed findings and 
        recommendations in the Federal Register and shall provide an 
        opportunity for public comment.
  (e) Report to Congress.--Not later than one year after the date of 
the enactment of this Act, the Secretary, in coordination with the 
Federal Interagency Investment Working Group and the heads of other 
relevant agencies, shall submit to Congress a report on the findings of 
the review required pursuant to subsection (a) and include 
recommendations for increasing the global competitiveness of the United 
States in attracting foreign direct investment from responsible 
private-sector entities based in trusted countries in a manner that 
strengthens or maintains the security, workforce, consumer, or 
financial protections of the United States.
  (f) Definitions.--In this Act:
          (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551 of title 5, United States Code.
          (2) Foreign adversary.--The term ``foreign adversary'' has 
        the meaning given that term in part 7.4 of title 15, Code of 
        Federal Regulations.
          (3) Responsible private-sector entity.--The term 
        ``responsible private-sector entity'' means an entity that the 
        Secretary determines is--
                  (A) not organized under the laws of a foreign 
                adversary; and
                  (B) not owned, controlled, or otherwise subject to 
                the influence of, a foreign adversary.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Commerce.
          (5) State.--The term ``State'' means each State of the United 
        States, the District of Columbia, each commonwealth, territory, 
        or possession of the United States, and each federally 
        recognized Indian Tribe.
          (6) Trusted country.--The term ``trusted country'' means a 
        country or economy that is not determined by the Secretary to 
        be a foreign adversary of the United States.

                          PURPOSE AND SUMMARY

    H.R. 813, the ``Global Investment in American Jobs Act of 
2023,'' was introduced by Representative Pence on February 2, 
2023, and referred to the Committee on Energy and Commerce. 
H.R. 813 would direct the Secretary of Commerce and the 
Comptroller General of the United States to conduct an 
interagency review and report on ways to increase global 
competitiveness of the U.S. in attracting foreign direct 
investment (FDI) from responsible private-sector entities based 
in trusted countries and economies. The review conducted shall 
include but not be limited to the current economic impact of 
FDI in the United States, trends in global cross-border 
investment, Federal Government policies that are closely linked 
to the ability of the U.S. to attract and retain FDI, FDI as 
compared to domestic direct investment, barriers to the U.S. 
competitiveness to attract FDI, and ongoing U.S. efforts to 
attract FDI. The bill would also require the Secretary of 
Commerce and the Comptroller General to report to Congress with 
recommendations for increasing global competitiveness of the 
U.S. in attracting FDI.

                  BACKGROUND AND NEED FOR LEGISLATION

    FDI is a category of investments into an ownership stake of 
a company that originates from foreign sources whether they are 
made by an investor, company, or a government from another 
country. FDI has proven to be critical for a country's economy, 
including during financial hardships,\1\ and creates a pathway 
for countries to manufacture new and emerging technologies.
---------------------------------------------------------------------------
    \1\https://www.imf.org/external/pubs/ft/fandd/2001/06/loungani.htm.
---------------------------------------------------------------------------
    In order for the U.S. to remain the global leader in the 
deployment of critical emerging technologies like autonomous 
vehicles, and the many other applications of artificial 
intelligence, quantum computing, blockchain and distributed 
ledger technologies, and advanced and new materials, it must 
remove unnecessary barriers prohibiting the expanse of FDI from 
trusted countries and economies. The U.S. must also promote 
policies to ensure it remains the premier global destination to 
invest, hire, innovate, provide services, and manufacture 
products, including emerging technologies.

                            COMMITTEE ACTION

    On February 7, 2023, the Subcommittee on Innovation, Data, 
and Commerce met in open markup session and forwarded H.R. 813 
without amendment, to the full Committee by a voice vote.
    On March 9, 2023, the full Committee on Energy and Commerce 
met in open markup session and ordered H.R. 813 as amended, 
favorably reported to the House by a recorded vote of 50 yeas 
and 0 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:


                 OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held hearings and made findings that 
are reflected in this report.

             NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, 
                          AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 813 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:




    H.R. 813 would require the Department of Commerce, the 
Government Accountability Office (GAO), and the Federal 
Interagency Investment Working Group to study and report to the 
Congress on the ability of the United States to attract foreign 
direct investment and barriers to foreign trade faced by 
advanced technology firms in the United States. Topics of study 
include the economic impact of foreign direct investment, 
challenges associated with foreign direct investment by state-
owned enterprises, and the influence of protectionist policies 
enacted by other countries on the advanced technology economy.
    Using information from the department and based on the cost 
of similar studies, CBO estimates that implementing H.R. 813 
would cost $2 million over the 2023-2028 period. Any spending 
would be subject to the availability of appropriated funds. CBO 
expects that the department would need about 12 economists and 
support staff, at an average cost of $180,000 each, to complete 
the study and prepare the report. CBO estimates that the cost 
for GAO and the Federal Interagency Investment Working Group to 
participate would be insignificant.
    The CBO staff contact for this estimate is David Hughes. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
increase U.S. global competitiveness to attract foreign direct 
investment from trusted countries and economies.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 813 is known to be duplicative of another Federal program, 
including any program that was included in a report to Congress 
pursuant to section 21 of Public Law 111-139 or the most recent 
Catalog of Federal Domestic Assistance.

              RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS

    Pursuant to clause 3(c)(6) of rule XIII,
    (1) the following hearing was used to develop or consider 
H.R. 813:
           The Subcommittee on Consumer Protection and 
        Commerce held a legislative hearing on October 14, 
        2021, on H.R. 2907, the ``Global Investment in American 
        Jobs Act,'' and 9 other bills. The hearing was 
        entitled, ``Investing in American Jobs: Legislation to 
        Strengthen Manufacturing and Competitiveness.'' The 
        Subcommittee received testimony from:
                    Scott Lincicome, Senior Fellow, CATO 
                Institute
                    Scott Paul, President, Alliance for 
                American Manufacturing
                    Caolionn O'Connell, RAND Corporation
                    Eric Sills, CEO, Standard Motor Products
    (2) The following related hearing was held:
           The Subcommittee on Innovation, Data, and 
        Commerce held a hearing on February 1, 2023. The 
        hearing was entitled, ``Economic Danger Zone: How 
        America Competes to Win the Future Versus China.'' The 
        Subcommittee received testimony from the following 
        witnesses:
                    Brandon Pugh, Policy Director and Resident 
                Senior Fellow, R Street Institute
                    Jeff Farrah, Executive Director, Autonomous 
                Vehicle Industry Association (AVIA)
                    Samm Sacks, Cyber Policy Fellow, 
                International Security Program, New America
                    Marc Jarsulic, Senior Fellow and Chief 
                Economist, Center for American Progress

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

       EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 813 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Global Investment in American Jobs Act of 2023''.

Section 2. Sense of Congress

    Section 2 provides the Sense of Congress expressing the 
importance of the ability of the U.S. to attract FDI from 
responsible private-sector entities based in trusted countries, 
the need to remove barriers prohibiting larger numbers of 
inbound FDI, the need to promote policies that encourage 
inbound FDI from responsible private-sector entities based in 
trusted countries and economies and that ensure the U.S. 
remains the global leader in developing and deploying emerging 
technologies. The sense of Congress also expresses that FDI 
should strengthen the U.S. security, improve the domestic 
standard of living and U.S. jobs, and that any FDI by companies 
or other entities owned, directed, supported, or influenced by 
the Chinese Communist Party (CCP) is a threat to U.S. security 
and merits an aggressive policy to protect U.S. interests, 
jobs, intellectual property, and security.

Section 3. Foreign Direct Investment review

    Section 3 requires the Secretary of the Department of 
Commerce and the Comptroller General of the United States, in 
consultation with the Federal Interagency Investment Working 
Group established pursuant to Executive Order 13577, and in 
consultation with the heads of other relevant agencies, to 
conduct an interagency review of the global competitiveness of 
the U.S. in attracting FDI from responsible private-sector 
entities based in foreign countries. The section requires the 
review to include certain aspects including but not limited to, 
the economic impact of FDI in the U.S.; Federal Government 
policies that encourage the attraction and retention of FDI; 
FDI as compared to direct investment by domestic entities; FDI 
that takes the form of greenfield investments; specific 
information on the efforts and the prevalence of investments 
made with the backing of the CCP, especially investments 
related to manufacturing, services, trade (with an emphasis on 
digital trade), and jobs, and how such efforts result in the 
displacement, offshoring, or outsourcing, including the impact 
of such investments on supply chains; the adequacy of efforts 
by the Federal Government to encourage and facilitate U.S. 
inbound FDI; and other barriers to the ability of the U.S. to 
compete globally in an increasingly digital economy.
    Section 3 clarifies that the review may not address laws or 
policies relating to the Committee on Foreign Investment in the 
U.S.
    Section 3 also requires the Secretary of Commerce to 
provide an opportunity for public comment on the matters 
covered by the review, and subsequently provide a report to 
Congress on the findings of the review, and provide 
recommendations for increasing the global competitiveness of 
the U.S. in attracting FDI from responsible private-sector 
entities based in trusted countries.
    Lastly, section 3 defines terms commonly used in the 
legislation.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                                  [all]