Sec. 1069. RECOMMENDATIONS FOR INTERAGENCY VETTING OF FOREIGN INVESTMENTS AFFECTING NATIONAL SECURITY

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## SEC. 1069 RECOMMENDATIONS FOR INTERAGENCY VETTING OF FOREIGN INVESTMENTS AFFECTING NATIONAL SECURITY ###

(a)Plan and Recommendations Required The Secretary of Defense, in concurrence with the Secretary of State, the Secretary of Treasury, and the Director of National Intelligence, shall 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 the interagency vetting of foreign investments that could potentially impair the national security of the United States. ###

(b)Objectives The recommendations required by subsection

(a)shall have the following objectives: ####

(1)To increase collaboration and coordination among agencies of the United States Government in the identification and prevention of foreign investments that could potentially impair the national security of the United States. ####

(2)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. ####

(3)To increase collaboration and cooperation among agencies of the United States Government to identify and mitigate potential threats to critical United States technologies from foreign state owned or state controlled entities. ###

(c)Analysis The recommendations required by subsection

(a)shall be based upon analysis of the following: ####

(1)Whether the current interagency vetting processes and policies place adequate focus on the potential threats presented by influence of the foreign governments over business entities seeking investment in the United States. ####

(2)The current or projected major vulnerabilities of the defense industrial base pertaining to foreign investment, including in the areas of cybersecurity, reliance on foreign suppliers in the defense supply chain access to materials that are essential for national defense, and the use of transportation assets and other critical infrastructure for training, mobilizing, and deploying forces. ####

(3)Whether the current interagency vetting process for foreign investments— #####

(A)requires additional resources to be effective; #####

(B)permits the interagency establishment adequate time to thoroughly review transactions and to conduct national security threat assessments; #####

(C)assesses the risks posed by transactions before they are implemented; and #####

(D)provides adequate monitoring and compliance of agreements to mitigate such risks. ####

(4)The counterintelligence risks posed by purchases or leases of Federal land. ####

(5)Whether and to what extent industrial espionage is occurring against private United States companies to obtain commercial secrets related to critical or foundational technologies. ####

(6)Whether and to what extent foreseeable foreign investments have the potential to— #####

(A)reduce any United States technological or industrial advantage of the United States; or #####

(B)increase the vulnerability of the United States to information operations, including the purposeful dissemination of false or misleading information to the American public and the manipulation of American public opinion on critical public policy issues. ####

(7)Whether currently mandated annual reports to Congress on the interagency vetting of foreign investments should be revised to ensure that they provide valuable information. ###

(d)Considerations The recommendations required by subsection

(a)shall take into consideration each of the following: ####

(1)Trends in foreign investment transactions, including joint ventures, the sale of assets pursuant to bankruptcy, and the purchase or lease of real estate in proximity to Government installations that could impair national security. ####

(2)Strategies used by foreign investors to exploit vulnerabilities in existing foreign investment vetting processes and regulations. ####

(3)Any market distortion or unfair competition incurred by foreign transactions that directly or indirectly impairs the national security or the United States. ###

(e)Reports ####

(1)Interim report Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the appropriate committees of Congress a report on the progress of the Secretary in developing the recommendations required by subsection (a). ####

(2)Final report Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report setting forth the recommendations developed pursuant to subsection (a). ####

(3)Form Each report under this subsection shall be submitted in unclassified form, but may include a classified annex. ####

(4)Appropriate committees of congress In this subsection, the term “appropriate committees of Congress” means— #####

(A)the Committees on Armed Services of the Senate and the House of Representatives; #####

(B)the Committee on Foreign Affairs of the House of Representatives; #####

(C)the Committee on Foreign Relations of the Senate; #####

(D)the Committee on Financial Services of the House of Representatives; #####

(E)the Committee on Finance of the Senate; #####

(F)the Permanent Select Committee on Intelligence of the House of Representatives; and #####

(G)the Select Committee on Intelligence of the Senate.