US Congress Pushes 'Mandatory Investment Approval Act' for Semiconductors and Advanced Technologies Including China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The U.S. Congress is preparing a system that requires domestic companies to obtain federal government approval when attempting to invest in advanced technology sectors in hostile countries, including China, the Wall Street Journal (WSJ) reported on the 13th (local time).

According to WSJ, the bill being discussed in the U.S. Congress centers on allowing the federal government to review and decide whether investments by American companies or investors in certain foreign countries are lawful from a national security perspective. Until now, the U.S. has regulated exports of advanced technology, but this bill expands the scope of regulation to include scrutiny of Americans' overseas investment activities.

If this law passes Congress, U.S. companies will need to undergo federal government review when attempting to invest in specific technologies designated by the U.S. government in "countries of concern" such as China. These technologies are designated by the U.S. National Science and Technology Council and the Office of the Director of National Intelligence, and include semiconductors, batteries, pharmaceuticals, rare earth elements, biotechnology, artificial intelligence, quantum computing, hypersonics, and robotics, WSJ reported.

The bill also includes provisions that typical transactions, such as software license sales, will be exempt even if they involve regulated sectors with countries like China.

The bill was proposed several months ago, and bipartisan lawmakers are reportedly reaching consensus on amendments to narrow the scope of regulation to specific sectors. WSJ reported that the Democratic Party, struggling ahead of the November midterm elections, is actively pushing the bill. House Democratic Majority Leader Steny Hoyer said, "We want to hold a vote on the bill before the congressional session ends on the 4th of next month."

The lobbying group "U.S.-China Business Council" opposes the bill, calling it an unprecedented law in the 250-year history of the United States that could increase uncertainty in corporate management and harm competitiveness.

This content was produced with the assistance of AI translation services.