H.R. 9092: TRAIN Act

This bill, known as the TRAIN Act, is designed to enhance the ability of certain countries in South and Central Asia to evaluate and manage the risks involved with accepting investments or loans from foreign adversaries, particularly China. The main points of the bill are as follows:

Training for Nonadversarial Countries

The bill mandates that within one year after its enactment, the Secretary of State must provide training to government officials from nonadversarial countries in South and Central Asia. This training will focus on:

• Risk Analysis: Teaching how to analyze and assess potential legal and financial risks associated with investments or loans from foreign adversaries.
• Risk Mitigation: Equipping officials with strategies and methods to mitigate these risks effectively.

Reporting Requirements

The bill establishes reporting requirements for the Secretary of State. Beginning two years post-enactment, the Secretary must submit annual reports to specific congressional committees that will include:

• An overview of training provided to officials.
• A summary of loans or agreements made between nonadversarial countries and foreign adversaries, including analysis of risks posed by these agreements to the United States.

These reports will be primarily unclassified but may include classified information as needed.

Collaboration with Other Entities

The Secretary is required to consult with several organizations and authorities, including:

• The United States International Development Finance Corporation.
• The Committee on Foreign Investment in the United States.
• The United States Trade Representative.
• The Export-Import Bank of the United States.
• Other federal agencies relevant to the training and assessment process.

Definitions

The bill provides specific definitions for terms used within it:

• Foreign Adversary: Refers to a foreign government or individual whose actions are significantly adverse to U.S. national security or that of its allies.
• Nonadversarial Country: Refers to a country that does not have a history of actions harmful to U.S. national security.
• Appropriate Congressional Committees: Includes specific committees within both the House of Representatives and the Senate focused on financial services, foreign affairs, and banking.

Goals of the Bill

The overarching aim of the TRAIN Act is to strengthen the capacity of nonadversarial countries to defend against potential exploitation related to foreign investment, particularly from China. This is seen as a response to the increasing influence of foreign adversaries in strategic sectors such as infrastructure and the economy within these regions.

Relevant Companies

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