S-5016 : Still Just a Bill

The Combat Chinese Economic Aggression Act of 2024, introduced as S. 5016, aims to counter the economic influence of the People's Republic of China through several key measures:

• Investment Review: It expands the scope of reviews by the Committee on Foreign Investment in the United States (CFIUS) to include investments that could enhance China's technological self-sufficiency or harm U.S. economic and technological competitiveness. It mandates declarations for certain transactions involving Chinese nationals or entities, particularly in sectors like metallurgy and telecommunications.
• Enhanced Securities Disclosure: The Act requires increased disclosure from investment advisers regarding private fund assets in countries of concern, including China. It also mandates disclosures for certain exempted securities transactions exceeding specified amounts, focusing on issuers associated with or intending to invest in countries of concern.
• Protection of Covered Sectors: It establishes a framework to prohibit or require notification of certain activities involving U.S. persons and covered foreign entities (linked to countries of concern) in critical sectors such as semiconductors, AI, and quantum computing. This includes defining covered activities, exceptions, and reporting requirements.
• Trade Authority Limitations: The legislation restricts trade authorities procedures for agreements that do not sufficiently limit the origination of content from nonmarket economy countries like China.
• Smartport Technology Risks: It directs the National Counterintelligence and Security Center to develop a strategy and conduct outreach on the risks associated with Chinese smartport technology and related entities to U.S. national security and supply chains.

In summary, the Act seeks to tighten regulations and increase oversight of investments and trade practices to safeguard U.S. economic interests and national security in the face of China's economic activities.