U.S. Reps. Guy Reschenthaler (R-PA) and Michael McCaul (R-TX) on Tuesday unveiled legislation that would provide Congress and federal agencies with information regarding American investments made to entities having ties with the Chinese Communist Party (CCP).
“This legislation will provide the federal government with tools to target CCP malign efforts, protect hard-working Americans’ savings and investments, and deter financial flows to foreign companies that undermine our national security,” Rep. Reschenthaler said.
The congressman sponsored the Protecting National Security in Financial Investments Act, H.R. 8407, with lead original cosponsor Rep. McCaul, ranking member of the U.S. House Foreign Affairs Committee, which would require the Securities and Exchange Commission (SEC) to assess whether the disclosure of information related to investments in certain entities is necessary or appropriate for the purposes of certain reports under the securities laws, according to the text of the bill.
“As a member of the China Task Force, I am proud to introduce the Protecting National Security in Financial Investments Act, which will strengthen our nation’s ability to counter threats posed by Communist China,” said Rep. Reschenthaler, who called on Congress “to bring this bill up for a vote.”
If enacted, H.R. 8407 also would require the SEC to prescribe regulations requiring a financial institution to disclose information regarding investments made to parties identified as a national security threat in the U.S. Commerce Department’s Entity List. Current law requires that all companies and individuals designated on the Entity List are threats to U.S. national security and are subject to certain licensing requirements for technology items, according to a summary provided by Rep. Reschenthaler’s office.
“By requiring the disclosure of investments in companies labeled as national security threats on the Department of Commerce Entity List, the Protecting National Security in Financial Investments Act fosters greater transparency for investors and protects the national security of the United States,” Rep. McCaul said. “In this generational contest with the CCP, the United States must avoid inadvertently channeling money and resources to companies that are threatening our security.”