NDAA Should Include Outbound Investment Notification Requirement, Lawmakers Say
Leaders of the Senate and House Armed Services committees should ensure the upcoming 2024 defense spending bill includes new measures protecting U.S. outbound investments when the two chambers work on a compromise text for the legislation, a bipartisan group of lawmakers said in a Nov. 20 letter. The more than 40 lawmakers suggested the final version of the National Defense Authorization Act should feature an amendment included as part of the Senate’s version of the NDAA, passed in June, that would require companies to notify the Treasury Department 14 days before making certain investments in several “countries of concern,” including China (see 2307260029 and 2307280052).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The letter, addressed to the Republican and Democratic chairs of the Armed Services Committees, said there is “strong bipartisan consensus” in both chambers to “address the national security threat posed by these outbound investments.” They noted that Treasury is drafting regulations that could establish prohibitions and a notification process for certain outbound investments but said more needs to be done.
“We have known for some time that U.S. companies are sending capital, intellectual property, and innovation to the [People’s Republic of China], fueling its advance in dual-use critical technology areas,” the letter said. “To safeguard our national security, the U.S. needs visibility into our vulnerabilities by requiring, at a minimum, notification of sensitive investments by U.S. firms in these countries.”