S. 1360: Protecting American Capital Act of 2025

The Protecting American Capital Act of 2025 aims to increase transparency regarding U.S. investments in China. Here are the key components of the bill:

Annual Reporting Requirement

The bill mandates that, within one year of its passing and annually thereafter, the Secretary of the Treasury must provide Congress with a report about U.S. portfolio investments in the People's Republic of China (PRC). This includes investments made directly and those routed through other jurisdictions.

Contents of the Reports

Each report must assess several key areas regarding the investments:

• Investors: Identify U.S. persons making investments in China, categorizing them by types, such as state pension funds, and noting any investors contributing more than 2% of total annual investments.
• Chinese Recipients: Analyze the Chinese entities receiving these investments, focusing on:
  • Different sectors of the Chinese economy, including housing.
  • Any entities subject to U.S. sanctions that still receive investments.
  • Entities receiving more than $100 million from U.S. investments.

Time Period Covered

The initial report will cover the period from January 1, 2008, up to the date of the report. Subsequent reports will address investments made in the one year leading up to the report's submission.

Definitions

The bill defines two key terms:

• Chinese Entity: An entity organized under the laws of China or subject to its jurisdiction.
• United States Person: This includes U.S. citizens, lawful permanent residents, and entities organized under U.S. laws, along with their foreign branches.

Purpose

The overall goal of the Protecting American Capital Act is to provide the U.S. government and the public with detailed information about how much money is being invested in China by American entities and individuals, which may have implications for national security and economic policy.

Relevant Companies

None found.