S. 4899: Securing Partner Supply Chains Act

This bill would direct the Secretary of State to create a new program called the Initiative on Foreign Investment Screening within 180 days after enactment. The program would be led by the Under Secretary for Economic Affairs, or someone that official designates, and would be set up in coordination with other U.S. government agencies as needed.

What the initiative would do

The initiative would focus on helping foreign governments screen investments for national security risks. In practical terms, it would:

• Provide technical assistance, training, and advice to foreign countries on how to review foreign investments for security concerns.
• Help coordinate efforts among U.S. agencies, private industry, partner countries, and civil society to promote security standards for foreign investment.
• Support partner countries in building or improving their own investment screening rules through guidance and information sharing.
• Track how much progress partner countries make in setting up these screening systems.
• Conduct outreach and capacity-building to raise awareness of risks tied to foreign investment.

How the bill defines the risks it is concerned about

The bill says foreign investment can be a problem when it may affect:

• critical infrastructure,
• sensitive technology,
• supply chain vulnerabilities, or
• malign foreign influence.

It defines “foreign investment” broadly to include direct or indirect investment by non-citizens/nationals or by entities not organized under that country’s laws.

Which countries count as “partner countries”

For purposes of the initiative, “partner country” would generally mean:

• a country with a free trade agreement with the United States,
• a country with a mutual defense treaty with the United States, or
• another country or jurisdiction that the Secretary of State decides to include.

Reporting and duration

The Secretary of State would have to submit reports to Congress within one year after enactment, and then once a year for the next three years. These reports would describe:

• the technical assistance and training provided,
• progress made by foreign countries in creating screening systems,
• new or emerging national security risks related to foreign investment,
• recommendations for further U.S. engagement, and
• for any country newly determined to be a partner country, the reasons for that decision.

The initiative would automatically end five years after it is established.

Relevant Companies

None found