By Karen Freifeld
(Reuters) – A bipartisan bill will be introduced by two U.S. senators on Thursday, mandating private equity firms to disclose their investments in China and other countries of concern.
The Democratic Senator Bob Casey and Republican Senator Rick Scott are set to introduce the bill, demonstrating the latest effort to monitor U.S. investments in China.
“The American people deserve to know where and how their savings are being invested,” stated Casey.
The United States has been aiming to control U.S. investment in China due to concerns that U.S. dollars and knowledge are contributing to Beijing’s military modernization through technological advancements.
Private investment firms from the U.S. have channeled over $80 billion into China between 2018 and 2022, with some funds coming from pension plans, as per Casey’s office.
The proposed measure mandates private equity funds to disclose annual assets invested in China, Iran, Russia, and North Korea to the U.S. Securities and Exchange Commission, which will then be required to publish a report based on the information. It also necessitates the disclosure of certain information regarding private security sales.
Rick Scott’s office has not yet responded to a request for comment.
Casey has also co-sponsored a bill requiring government notification of investments in specific sensitive technology sectors in China, which has been included as an amendment to the Senate’s National Defense Authorization Act (NDAA).
The new bill follows an executive order on outbound investment, prohibiting some U.S. investments in China in semiconductors, microelectronics, quantum computing, and artificial intelligence, and mandating notification of others, though the order has not yet been implemented.
(Reporting by Karen Freifeld; Editing by Sharon Singleton)
