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US lawmakers reach compromise on screening investments in China

  • ‘An outbound investment review mechanism is a critical tool,’ says a bipartisan group of seven US senators and representatives
  • The measure could be included in a final version of sweeping legislation meant to strengthen US competitiveness with Beijing

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Details of the new investment screening plan are not yet public, and a congressional aide called it a “discussion draft”. Photo: Los Angeles Times/TNS
Jacob Fromerin Washington

A bipartisan group of US lawmakers has struck a compromise on a long-debated plan to screen outbound investments into China, members of the Senate and House of Representatives said on Monday.

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It comes as Congress continues to negotiate a final version of sweeping legislation meant to strengthen US competitiveness with Beijing, and the lawmakers’ announcement raises the odds that the new outbound investment rules could be included in that final bill.

If it is included, the new rules on outbound investments could theoretically become law as soon as this summer, although an exact timeline is still unclear.

The compromise measure was first reported by The Wall Street Journal.

“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,” said the group of seven lawmakers.

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