Sec. 1066. Plan and recommendations for interagency vetting of foreign investments with potential impacts on national defense and national security
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The Secretary of Defense shall, in consultation with the Secretary of State and the Secretary of Treasury, assess and develop a plan, and recommendations for agencies of the United States Government other than the Department of Defense, to improve the effectiveness of interagency vetting of foreign investments that could potentially impair both the national security of the United States and the ability of the Department to defend the nation, specifically investments from nations that pose threats to the national security interests of the United States. The assessment, plan, and recommendations required by subsection
(a)shall have the following objectives: To increase collaboration and coordination among the Department of Defense and other agencies of the United States Government, including the Director of National Intelligence, in the identification and prevention of foreign investments that could potentially impair the national security of the United States and the ability of the Department to defend the nation. To increase collaboration and cooperation among the United States Government and governments of United States allies and partners on investments described in paragraph (1), including through information sharing. To restrict investments described in paragraph
(1)by countries of special concern in critical technologies and emerging technologies that are foundational for maintaining the United States technological advantage. The plan and recommendations required by subsection
(a)shall be based upon the results of an analysis of issues as follows: Whether the current interagency vetting processes and policies place adequate focus on the country of origin of each transaction, particularly when it is a country of special concern, and whether certain transactions emanating from those countries should be presumed to pose certain risks to the ability of the Department to defend the nation. What are the current or projected major vulnerabilities of the Department pertaining to foreign investment, including in the areas of cybersecurity, reliance on foreign suppliers in the supply chain for defense equipment, limitations on access to certain materials that are essential for national defense, and the use of transportation assets and other critical infrastructure for training, mobilizing, and deploying forces. Whether the current interagency vetting process for foreign investments— requires additional resources in order to be effective; permits the Department adequate time to thoroughly review transactions to conduct national security threat assessments and also determine the impacts of transactions on national defense; adequately takes into account risks to the ability of the Department to defend the nation posed by transactions before attempting to mitigate them in various ways; and provides adequate monitoring and compliance of agreements to mitigate such risks. Whether other agencies of the United States Government, including the Department of the Interior, are aware of the counterintelligence risks posed to facilities of the Department by purchases or leases of nearby Federal land and are cooperative in providing information to permit a proper assessment of those risks. Whether and to what extent industrial espionage is occurring against private United States companies to obtain commercial secrets related to critical or foundational technologies. Whether and to what extent future foreign investments have the potential for any of the following: To increase the cost to the Department of acquiring or maintaining necessary defense-related equipment and systems. To reduce the United States technological and industrial advantage relative to any country of special concern. To give any country of special concern a heightened ability to conduct information warfare against the United States, including through the spread false or misleading information to the American public and the manipulation of American public opinion on critical public policy issues. Whether currently mandated annual reports to Congress on the interagency vetting of foreign investments provide valuable information. The elements of the assessment, plan, and recommendations required by subsection
(a)shall include the following: A list of countries of special concern for investments that could potentially impair the ability of the Department to defend the nation. A description of recent trends in foreign investment transactions by countries of special concern, including joint ventures, the sale of assets pursuant to bankruptcy, and the purchase or lease of real estate in proximity to military installations. A description of any strategies used by countries of special concern to exploit vulnerabilities in existing foreign investment vetting processes and regulations. An assessment of any market distortion or unfair competition by any country of special concern that directly or indirectly impairs the national security or the United States and the ability of the Department to defend the nation. Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the progress of the Secretary in developing the plan and recommendations required by subsection (a). Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the committees of Congress referred to in paragraph
(1)a report setting forth the plan and recommendations developed pursuant to subsection (a). Each report under this subsection shall be submitted in unclassified form, but may include a classified annex.