H.R.2246 - Foreign Investment Guardrails to Help Thwart (FIGHT) China Act (119th Congress)
Summary
H.R.2246, the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act, aims to protect U.S. national security by imposing sanctions on certain persons in the People's Republic of China (PRC) and regulating investments by U.S. persons in the PRC. The bill grants the President authority to impose sanctions, prohibits certain investments related to national security transactions, and requires notifications for other investments in prohibited technologies.
The Act also directs the Secretary of the Treasury to identify PRC entities for inclusion on the Non-SDN Chinese Military-Industrial Complex Companies List and mandates divestment from these entities. It includes provisions for waivers based on national security or foreign policy objectives, subject to congressional notification.
Furthermore, the bill requires reports to Congress on various aspects of its implementation, including enforcement actions, notifications of investments, and recommendations for amending the definition of prohibited technology.
Expected Effects
The bill will likely lead to increased scrutiny of U.S. investments in China, potentially reducing the flow of capital into certain sectors deemed critical to national security. Sanctions could disrupt existing business relationships and supply chains.
It may also lead to retaliatory measures from China, impacting U.S. businesses operating there. The reporting requirements and regulatory framework will increase compliance costs for U.S. companies.
Potential Benefits
- Enhanced national security by restricting investments in PRC entities involved in sensitive sectors.
- Increased transparency regarding U.S. investments in China through mandatory notifications.
- Potential for greater diversification of supply chains away from China.
- Encourages multilateral cooperation with allies to address shared concerns about PRC's technological advancements.
- Provides a framework for continuous assessment and adaptation through regular reports to Congress.
Most Benefited Areas:
Potential Disadvantages
- Potential for economic disruption due to sanctions and investment restrictions.
- Increased compliance costs for U.S. businesses.
- Risk of retaliatory measures from China.
- May hinder innovation by limiting access to PRC markets and technologies.
- Could strain diplomatic relations with China.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's focus on national security and foreign commerce falls under the powers granted to Congress in Article I, Section 8 of the Constitution, which includes the power to regulate commerce with foreign nations and to provide for the common defense.
The President's authority to impose sanctions is consistent with the executive power vested in Article II. However, the delegation of authority to the Secretary of the Treasury must be balanced with the principle of non-delegation, ensuring Congress provides sufficient guidance and standards.
The bill does not appear to infringe upon individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).