What This Bill Does
This bill requires the Secretary of the Treasury to submit an annual report to Congress about money that Americans invest in Chinese companies. The report must cover investments made by American individuals and businesses, including investments that go through countries outside the United States.
Who It Affects
The Secretary of the Treasury, Congress, American citizens, American companies, state pension funds (money saved for retired government workers), and Chinese companies receiving American investments.
Key Provisions
• The Secretary of the Treasury must submit a report to Congress no later than one year after the bill becomes law, and every year after that (Sec. 2(a))
• Each report must identify what types of American people and organizations are making investments in China, including state pension funds and Americans making more than 2 percent of total yearly investments (Sec. 2(b)(1))
• Each report must assess Chinese companies receiving investments, broken down by economic sectors including housing, and identify Chinese companies under United States sanctions that receive investments (Sec. 2(b)(2))
• Each report must identify Chinese companies receiving more than $100,000,000 in American investments (Sec. 2(b)(2)(C))
• The first report must cover investments from January 1, 2008, to when the report is submitted, and later reports must cover only the one-year period before submission (Sec. 2(c))
What Changes
The Treasury Department must now track and report annually on American portfolio investments (ownership stakes in companies) in China. This information must be given to Congress each year.
Important Definitions
• "Chinese entity" means a company organized under Chinese law or controlled by the Chinese government
• "United States person" means American citizens, people legally allowed to live permanently in America, or any company organized under American law or a foreign branch of an American company
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 860
To require an annual report on United States portfolio investments in the
People’s Republic of China, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 16, 2023
Mr. SCOTT of Florida (for himself and Mrs. SHAHEEN) introduced the fol-
lowing bill; which was read twice and referred to the Committee on Bank-
ing, Housing, and Urban Affairs
A BILL
To require an annual report on United States portfolio in-
vestments in the People’s Republic of China, and for
other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Protecting American
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Capital Act of 2023’’.
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•S 860 IS
SEC. 2. ANNUAL REPORT ON UNITED STATES PORTFOLIO
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INVESTMENTS IN THE PEOPLE’S REPUBLIC
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OF CHINA.
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(a) IN GENERAL.—Not later than one year after the
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date of the enactment of this Act, and annually thereafter,
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the Secretary of the Treasury shall submit to Congress
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a report on portfolio investments by United States persons
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in the People’s Republic of China, including such invest-
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ments routed through a jurisdiction outside the United
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States.
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(b) ELEMENTS.—Each report required by subsection
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(a) shall include an assessment of the involvement of the
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following in portfolio investments in the People’s Republic
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of China:
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(1) United States persons making such invest-
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ments, including an assessment of—
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(A) the types of United States persons
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making such investments, including State pen-
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sion funds; and
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(B) United States persons making more
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than 2 percent of the total of such investments
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in a year.
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(2) Chinese entities receiving such investments,
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including an assessment of—
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•S 860 IS
(A) such entities in individual sectors of
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the economic of the People’s Republic of China,
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including the housing sector;
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(B) any Chinese entities subject to sanc-
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tions imposed by the United States receiving
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such investments; and
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(C) Chinese entities that receive more than
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$100,000,000 from such investments.
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(c) PERIOD COVERED.—The period covered by a re-
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port required by subsection (a) shall be—
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(1) in the case of the first such report, the pe-
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riod beginning on January 1, 2008, and ending on
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the date of the report; and
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(2) in the case of each subsequent such report,
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the one-year period preceding submission of the re-
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port.
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(d) DEFINITIONS.—In this section:
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(1) CHINESE ENTITY.—The term ‘‘Chinese en-
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tity’’ means an entity organized under the laws of
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the People’s Republic of China or otherwise subject
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to the jurisdiction of the Government of the People’s
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Republic of China.
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(2)
UNITED
STATES
PERSON.—The
term
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‘‘United States person’’ means—
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•S 860 IS
(A) a United States citizen or an alien law-
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fully admitted for permanent residence to the
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United States; or
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(B) an entity organized under the laws of
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the United States or any jurisdiction within the
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United States, including a foreign branch of
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such an entity.
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Æ
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