Exposing China’s Belt and Road Investment in America Act of 2023

Bill: 118-s-2069
Sponsor: full_name: Sen. Kennedy, John [R-LA]
Introduced: 2023-06-21
Policy area: Foreign Trade and International Finance
Subjects: Asia

China

Corporate finance and management

Foreign and international corporations

Government information and archives

Industrial facilities

Real estate business

U.S. and foreign investments
Latest action: action_date: 2023-06-21
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-06-21
action_desc: Introduced in Senate
text: <p><b>Exposing China's Belt and Road Investment in America Act of </b><strong></strong><b>2023</b></p> <p>This bill requires the Committee on Foreign Investment in the United States to review certain investments made by China in the United States.</p> <p>Specifically, the committee must review any investment by a foreign person that (1) involves the acquisition of real estate in the United States and the establishment of a U.S. business on such real estate, and (2) could result in direct or indirect control of that U.S. business by China. A party to any such investment must submit to the committee a declaration containing basic information regarding the transaction.</p>

tv_txt: II 118th CONGRESS 1st Session S. 2069 IN THE SENATE OF THE UNITED STATES June 21, 2023 Mr. Kennedy (for himself and Mr. Cramer ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the review by the Committee on Foreign Investment in the United States of greenfield investments by the People's Republic of China.

1. Short title This Act may be cited as the Exposing China’s Belt and Road Investment in America Act of 2023 . 2. Review by Committee on Foreign Investment in the United States of greenfield investments by People's Republic of China (a) Inclusion in definition of covered transaction Section 721(a)(4) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a)(4) ) is amended— (1) in subparagraph (A)— (A) in clause (i), by striking ; and and inserting a semicolon; (B) in clause (ii), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (iii) any transaction described in subparagraph (B)(vi) proposed or pending on or after the date of the enactment of this clause. ; and (2) in subparagraph (B), by adding at the end the following: (vi) An investment by a foreign person that— (I) involves— (aa) the completed or planned purchase or lease by, or a concession to, the foreign person of private or public real estate in the United States; and (bb) the establishment of a United States business to operate a factory or other facility on that real estate; and (II) could result in control, including through formal or informal arrangements to act in concert, of that United States business by— (aa) the Government of the People’s Republic of China; (bb) a person owned or controlled by, or acting on behalf of, that Government; (cc) an entity in which that Government has, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest; (dd) an entity in which that Government has, directly or indirectly, the right or power to appoint, or approve the appointment of, any members of the board of directors, board of supervisors, or an equivalent governing body (including external directors and other individuals who perform the duties usually associated with such titles) or officers (including the president, senior vice president, executive vice president, and other individuals who perform duties normally associated with such titles) of any other entity that held, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity in the preceding 3 years; or (ee) an entity in which any members or officers described in item (dd) of any other entity holding, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity are members of the Chinese Communist Party or have been members of the Chinese Communist Party in the preceding 3 years. . (b) Definition of Government of People's Republic of China Section 721(a) of the Defense Production Act of 1950 ( 50 U.S.C. 4565(a) ) is amended— (1) by redesignating paragraphs (8) through (13) as paragraphs (9) through (14), respectively; and (2) by inserting after paragraph (7) the following: (7) Government of People's Republic of China The term Government of the People's Republic of China includes the national and subnational governments within the People’s Republic of China, including any departments, agencies, or instrumentalities of such governments. . (c) Mandatory filing of declarations Section 721(b)(1)(C)(v)(IV)(bb) of the Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)(bb)) is amended by adding at the end the following: (DD) Greenfield investments by People’s Republic of China The parties to a covered transaction described in subsection (a)(4)(B)(vi) shall submit a declaration described in subclause (I) with respect to the transaction. .