A bipartisan group of lawmakers signed a letter advocating for a provision in the 2024 National Defense Authorization Act (NDAA) that would address concerns about outbound investments in China. The provision would require U.S. citizens or companies investing in sectors like semiconductors, satellites, or artificial intelligence in a “country of concern” to provide written notification of the transaction to the Secretary of the Treasury at least two weeks in advance. Meanwhile, Rep. Patrick McHenry (R–N.C.) is effectively blocking the measure’s inclusion in the House’s version of the NDAA. McHenry opposes broad investment restrictions and believes that the administration’s policy on limiting American investments in foreign countries is arbitrary and incoherent. Some experts believe that a more measured approach is warranted, and Congress should consider targeting specific companies rather than imposing blanket restrictions to safeguard American influence and intelligence without creating unnecessary bureaucracy. Just like targeted sanctions, Congress can designate certain companies that are particularly objectionable to be off-limits, while allowing Americans the freedom to otherwise use their money as they see fit.

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