What’s New
Provisions aimed at limiting American investments in certain Chinese industries were scrapped from a temporary spending bill negotiated to avert a government shutdown.
The original bill, which was renegotiated after Donald Trump and Elon Musk came out against it, would have prohibited or required notification of overseas transactions involving China in sectors like semiconductors, quantum technology and artificial intelligence.
It also would have included an expanded review of Chinese real estate purchases near national security-sensitive sites and a requirement to study national security risks posed by Chinese-made consumer modems and routers.
The inclusion of restrictions on outbound investment marked the culmination of a year-long debate between pro-business lawmakers, who warned that overregulation could weaken U.S. industries against foreign competitors, and national security-focused lawmakers determined to curb the transfer of American capital and expertise to China’s military.