H.R.4521, the Bipartisan Innovation Act, Goes Forward--Detachment Between the US and Chinese Economies Takes Another Step Forward

 

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"A bipartisan group of U.S. lawmakers said on Monday they had agreed on a proposal to give the government sweeping new powers to block billions in U.S. investment into China, though the measure is part of a broader bill with an uncertain future." (China investment curbs gain momentum in U.S. lawmaker talks). This has been in the works for some time (reporting HERE).  The object is to provide state guidance on the detachment of key elements pf the US economy (and its dependencies) from that of China, while leaving a smaller and more carefully targeted sphere of mutual engagement between the two imperial centers.

On 13 June 2022,U.S. Senators Bob Casey (D-PA) and John Cornyn (R-TX) and Representatives Rosa DeLauro (D-CT), Bill Pascrell, Jr. (D-NJ), Michael McCaul (R-TX), Brian Fitzpatrick (R-PA) and Victoria Spartz (R-IN) released a joint statement on the new proposal for an outbound investment mechanism in the conference of H.R.4521, the Bipartisan Innovation Act. The Statement  follows:

“Over the last couple months, we have engaged in constructive discussions with stakeholders on developing a robust, targeted outbound investment mechanism to ensure the United States is not ceding its manufacturing power in industries critical to our economic and national security to foreign adversaries. The refined proposal released today has bipartisan, bicameral support and addresses industry concerns, including the scope of prospective activities, industries covered, and the prevention of duplicative authorities. This discussion draft aligns the United States with the outbound investment mechanisms of our allies. We look forward to meaningful engagement in writing from stakeholders as we work to secure this bill in the conference report. Creating an outbound investment review mechanism is a critical tool as Congress works to provide guardrails on taxpayer funds and safeguard our supply chains from countries of concern, including the People’s Republic of China.”(Joint Press Release)

Here for information on the Conference Committee on Bipartisan Innovation and Competition Legislation.

For the text in its current form and as introduced: here.