Senators seek to empower Trump against Chinese investment threats

In a significant legislative move, a bipartisan team of freshman senators from the United States introduced the Providing Rigorous Oversight Through Evaluation of Concerning Transactions Act, known as the PROTECT Act, aimed at enhancing the authority of the Committee on Foreign Investment in the United States (CFIUS). Senators Bernie Moreno, Tim Sheehy, and Elissa Slotkin sponsored the bill, which would enable the committee to halt both new foreign investment projects and existing foreign investments in U.S. facilities. This legislative effort responds to growing concerns regarding national security, particularly relating to investments from countries deemed adversarial, such as China, Iran, and North Korea. The urgency behind this proposal was underscored by remarks made by the sponsoring senators, who articulated risks posed by foreign investments that could affect sensitive American land and operations in critical technologies, especially artificial intelligence. Slotkin emphasized her experiences in the U.S. House, stating that the bill builds upon her previous work by expanding CFIUS's capabilities to scrutinize a wider array of transactions. Senator Moreno highlighted the necessity of giving President Trump “maximum negotiating leverage” to address ongoing economic and strategic challenges with China, positioning the proposed legislation as a vital tool for achieving this objective. Furthermore, the introduction of the bill coincided with the enforcement of a sweeping tariff regime imposed by President Trump, which included an initial 104% tariff on imports from China, later increased to 125%. This tariff-related policy was also met with retaliation from China, which instituted an 84% tariff on U.S. goods. Moreno pointed out that these actions are intended not just as punitive measures but as steps toward resetting the economic relationship with China, a country he characterized as a strategic adversary. The overarching goal articulated by the senators is to prevent or restrict foreign adversaries from gaining access to American resources and technologies, aligning this legislative effort with broader national security strategies. This legislative proposal, framed within a challenging political landscape, highlights the increasing bipartisan consensus on the need for stronger oversight of foreign investments in the United States. The sponsors of the bill, having faced significant electoral challenges, believe they are in touch with voter concerns regarding national security and economic independence. As the bill advances in Congress, its potential to reshape investment policies and limit foreign adversarial influences in the U.S. market remains a focal point of discussion among policymakers and the public alike.