Anti-China Bill Being Softened After US Companies Complain (reuters.com)

Proposed legislation in Congress aimed at preventing China from acquiring sensitive technology is being softened after protests by big U.S. companies who fear a loss in sales, Reuters reported on Thursday, citing people with knowledge of the matter. From the report: Two bills in the House of Representatives and Senate would broaden the powers of the inter-agency Committee on Foreign Investment in the United States (CFIUS) in hopes of stopping Chinese efforts to acquire sophisticated U.S. technology. The bipartisan legislation has the support of President Donald Trump's administration. "We are concerned that it vastly expands the scope and jurisdiction (of CFIUS)," said Nancy McLernon, chief executive of the Organization for International Investment, a group that represents global companies with U.S. operations. Given the alarm that the legislation has caused, Senator John Cornyn's staff is drafting changes to address industry concerns, according to three sources. Cornyn's office did not respond to a request for comment.

Comments

The proposed changes are

[raymorris]

The current draft of the bill would allow the committee to review certain deals related to handing over "critical technology" or a "critical infrastructure" company. Two potential changes have been suggested. Congress could define more precisely what those terms mean, limiting the committee's review power more specifically. Congress could also delete those provisions as they relate to transactions other than China buying a US company. Transactions in which China buys the "critical technology" output from US companies could then be regulated by other agencies which handle export controls.