WASHINGTON – U.S. Senators John Cornyn (R-TX), Catherine Cortez Masto (D-NV), Jim Banks (R-IN), Elissa Slotkin (D-MI), Pete Ricketts (R-NE), Michael Bennet (D-CO), Bill Hagerty (R-TN), Andy Kim (D-NJ), Dave McCormick (R-PA), Chuck Schumer (D-NY), and Dan Sullivan (R-AK), along with Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), today introduced the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act, which would safeguard the United States’ national security against the growing threat posed by the People’s Republic of China (PRC) by prohibiting and requiring notification of U.S. investment in certain technologies in China:

“The threat China poses to the United States’ national and economic security continues to grow, and we have a generational opportunity to confront it with the FIGHT China Act,” said Sen. Cornyn. “By prohibiting and requiring notification of U.S. investments in certain technologies in China, this bill would help ensure American ingenuity, innovation, and investment do not end up in the hands of the Chinese Communist Party to be weaponized against us. The need to address capital flowing from the U.S. to bad actor nations was first realized during the first Trump administration, and I look forward to finishing what we started then by getting this vital priority over the finish line.”

“When it comes to cutting-edge technologies – such as AI and semiconductors – the United States must remain ahead of China,” said Sen. Cortez Masto. “I’m proud to stand with my colleagues across the aisle to introduce this bill that is critical for our national security. We can and must make sure no American investments are giving the Chinese Communist Party a leg up in developing these vitally important technologies.”

“Countering the Chinese Communist Party requires a strategic, all-of-the-above approach, and there’s no better person to lead that effort than President Trump,” said Chairman Scott. “That’s why I’ve continued to work on legislation to give the Trump administration the tools to restrict certain outbound investments that would harm U.S. national security interests, and this important effort will help protect our economic national security.”

“We have a responsibility to ensure we are developing the most sensitive and cutting-edge technology here in the United States rather than funding its development in countries that do not share our values,” said Ranking Member Warren. “This bill is an important bipartisan step to address outbound investments that threaten our national security.”

“American dollars and innovation should never be used to undercut our national security,” said Sen. Banks. “This bill helps ensure that the savings and retirement funds of hardworking Americans aren’t spent strengthening the military of Communist China.”

“It’s simple — no more helping China produce the tech they could use against us,” said Sen. Slotkin. “This legislation cuts off U.S. investments into certain industries and technologies controlled by the Chinese Communist Party and allows us to hit bad actors with tough sanctions. We must protect American innovation and keep our national security strong.”

“American capital shouldn’t subsidize the growth of Communist China’s military and surveillance state,” said Sen. Ricketts. “The FIGHT China Act will address national security threats. It will protect American capital, intellectual property, and innovation from supporting Communist China’s malign ambitions.”

“As China aids Russia’s war against Ukraine, hacks U.S. infrastructure, and threatens our partners across the Indo-Pacific, we must ensure American dollars do not support the Chinese government’s development of advanced technologies with potential military uses,” said Sen. Bennet. “This bill will bolster U.S. national security by creating a framework to screen and block these dangerous investments.”

“As long as we stay blind to American investments in strategic sectors abroad, we lend a helping hand to China and other competitors as they use these resources to grow their military and turn around to target our nation’s security and interests,” said Sen. Kim. “Congress must deliver solutions like this bipartisan and common-sense bill that can help us confront evolving threats.”

“We need to cut off U.S. investment in the Chinese Communist Party’s military modernization and dual-use technology development,” said Sen. McCormick. “It’s critical that we make sure President Trump has the authority and tools he needs to stand up against China’s efforts to undermine our national security. I’m proud to join Senator Cornyn and my colleagues in protecting American interests by stopping dangerous investment in China.”

“The United States leads the world in innovation and we must protect against the harmful flow of U.S. investment into China for the development of sensitive technology, including semiconductors, AI, quantum computing, and more. We cannot allow China to get ahead in military technology by taking advantage of U.S. investment and ingenuity,” said Leader Schumer. “The FIGHT China Act would help protect our national security and ensure the U.S., not China, leads in these critical technologies. We have no time to waste in safeguarding our national security.”

“Our country’s investments in innovative technology give us an enormous advantage over the Chinese Communist Party,” said Sen. Sullivan. “But this advantage is threatened when American financial institutions invest in CCP-controlled companies that develop technology—like advanced semiconductors, artificial intelligence, quantum computing, and hypersonics—that could ultimately be used to kill Americans at home and Marines in the Taiwan Strait. I’m glad to once again join Senator Cornyn on legislation to put safeguards in place to ensure that American investments don’t go to support the nefarious ambitions of dictators around the world.”

“China has a long history of ripping off American workers and businesses—extorting companies, stealing trade secrets, and undercutting American manufacturing. Enough is enough,” said Sen. Fetterman. “I’m proud to back this bill because we need to be using every tool we’ve got to take on China and protect our economy. This is a commonsense, bipartisan step to keep our cutting-edge tech out of the hands of countries that want to undermine us.”

The legislation is also cosponsored by Senator Bill Hagerty (R-TN).

Background:

Building on Sen. Cornyn’s previous efforts to increase transparency and prohibit investments by American entities in sensitive technologies in China, and in conjunction with the Trump administration’s America First Investment Policy, the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act would permit the Secretary of the Treasury to prohibit U.S. investments in certain technologies in the People’s Republic of China (PRC), including certain Artificial Intelligence (AI) models, quantum computers, materials used in hypersonic systems, and other military technologies. It would also require U.S. entities to notify the U.S. Department of the Treasury of investments in certain AI models in the PRC. Lastly, the legislation would permit the Secretary of the Treasury to impose sanctions under the International Emergency Economic Powers Act (IEEPA) against PRC entities that engage with the PRC military and intelligence sectors.

Specifically, the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act would cover the following investments:

• Acquisitions, including of limited partners, equity interest, property, or other assets;
• Loans and debt financing;
• Joint ventures;
• And equity interest or debt conversions.

The legislation would establish exemptions for:

• Transactions determined to be de minimis or in the national interest;
• Investments in securities, derivatives of securities, or made as a limited partner in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund;
• Ancillary transactions undertaken by a financial institution;
• Acquisitions of entire assets or entities located outside the PRC;
• Certain transactions secondary to a covered national security transaction;
• And certain ordinary or administrative business transactions.

The legislation would prohibit covered investments in the PRC for development or production of:

• Certain advanced integrated circuits;
• Certain AI models capable of a high number of operations;
• Quantum computers and supercomputers;
• Materials or components for hypersonics; and
• Any of these technologies that are on the Munitions List, intended for use with nuclear equipment or facilities, or emerging technologies subject to export controls.

Lastly, the legislation would require U.S. persons to notify the U.S. Department of the Treasury within 14 days when making a covered investment in the PRC for the development or production of:

• Any non-prohibited integrated circuit;
• And any non-prohibited AI system which is used for military, surveillance, cybersecurity, penetration, forensics, or robotic system use or which meets a certain computing standard.