Skip to content

Bill would provide the U.S. public transparency into private equity and hedge fund investments in countries of concern

New Casey bill builds upon prior Casey efforts to protect American jobs, such as Casey-led amendment to screen US national security investments in China which passed in July

Washington, D.C. – Today, U.S. Senators Bob Casey (D-PA) and Rick Scott (R-FL) introduced the Disclosing Investments in Foreign Adversaries Act to provide transparency into investments made by American hedge funds and private equity firms in countries of concern like China and Russia. Currently, private equity, hedge funds, and venture capital firms can invest Americans’ savings and pensions in China without the American people’s knowledge. The legislation would require these private investment funds to annually disclose any assets invested in countries like China to the Securities and Exchange Commission (SEC); require the SEC to publicly release a report of firms investing assets in countries of concern and the percentage of those invested assets; entities selling stock in the private markets would also be required to disclose the recipient of the investment, the intended location of the investment, and the investment’s intended purpose.

“Americans deserve to know where and how their savings are being invested,” said Senator Casey. “It is vital to know if our money is being used to boost the economies of our adversaries who steal our technological know-how and steal our jobs. This legislation will help Americans better understand how our own dollars are being used to advance the interests of countries like China.”

“Our adversaries, like Communist China, benefit from a complete lack of transparency allowing them to hide and fund bad behavior—especially when it comes to financial markets. These foreign adversaries lie, cheat and steal, and it’s almost impossible to call them out for it. It is time to stop sending American dollars to these countries of concern,” said Senator Scott. “I am proud to lead this bipartisan charge with my colleague Senator Casey as we work across the aisle to hold bad actors accountable.”

“The Chinese Communist Party has been methodically exploiting U.S. capital markets and American investors to fund its economic and military rise for far too long. ASA commends Senator Bob Casey (D-PA) and Senator Rick Scott (R-FL) for introducing the Disclosing Investments in Foreign Adversaries Act, which would force Wall Street to disclose its investments in China, Iran, Russia, and North Korea,” said American Securities Association President & CEO Chris Iacovella. “A strong, bipartisan consensus in Washington has emerged that wants to end the Chinese Communist Party’s access to American capital, and this Congress should take advantage of that momentum to protect American investors and the integrity of our capital markets.”

"The American people deserve to know whether their hard-earned savings are invested here at home or sent to adversaries abroad. The Disclosing Investments in Foreign Adversaries Act brings much-needed transparency to the financial sector by enhancing reporting requirements for U.S. investments in countries like China, Iran, Russia, and North Korea,” said FDD Action. “This commonsense legislation protects our national security, promotes greater financial oversight, and ensures that U.S. funds are not strengthening the technological capabilities and industrial bases of America’s adversaries. FDD Action is pleased to endorse this legislation to safeguard our financial future and strategic interests.”

Without the ability for the U.S. public to monitor investments made by large private equity, hedge funds, and venture capital funds in foreign economies, American states, municipalities, universities, unions, and pension funds could unknowingly be investing in the United States’ economic competitors like China and Russia.

Senator Casey has consistently led the effort to protect American workers and families and strengthen our national security against countries like China, first introducing outbound investment screening legislation, the National Critical Capabilities Defense Act, in May 2021 as an amendment to the United States Innovation and Competition Act alongside Senator John Cornyn (R-TX), to help the U.S. better understand the risks of allowing foreign adversaries to gain access to critical capabilities and technology, as well as to design and manufacture goods that are vital to U.S. economic and national security interests. Senators Casey and Cornyn have been working to garner bipartisan and bicameral support for their bill. Biden Administration officials, including Commerce Secretary Gina Raimondo, United States Trade Representative Katherine Tai, and National Security Advisor Jake Sullivan have also expressed support for increased scrutiny of outbound investment.

In September 2022, as one of the cosponsors of the National Critical Capabilities Defense Act, Casey urged President Biden to take executive action to prevent the US from ceding our manufacturing power and technological know-how to foreign adversaries. Days later, Casey and Cornyn testified in support of the National Critical Capabilities Defense Act in front of the Senate Banking Committee, stressing the importance of assessing potential risks of American investments in adversarial countries.

In December 2022, the Fiscal Year 2023 spending bill appropriated approximately $20 million in funding for the Department of Commerce and the Department of the Treasury to establish an outbound investment screening program by Executive Order, as Casey has pushed for the Administration to do. In March 2023, Casey wrote an op-ed outlining how to protect American innovation and keep American national and economic interests out of adversaries’ hands. In May, Senate Majority Leader Chuck Schumer (D-NY) announced a new initiative to strengthen America’s global leadership, including Casey’s provision to screen U.S. investments being made in countries of concern.

Ahead of the 2023 introduction of the Outbound Investment Transparency Act, Casey continued to build momentum for the policy. In June, key Administration officials testified in front of the Senate Banking Committee about the importance of screening American companies’ investments in countries of concern—testimony which supports Casey’s proposal. Later that month, Casey delivered a rousing speech to union workers and business leaders in Pittsburgh to outline his vision for the United States to take control of its economic future, including prohibiting certain investments going to countries like the People’s Republic of China and help de-risk our supply chains. In his speech, Casey argued for a stronger provisions to prohibit U.S. corporations from investing in our national security industries in countries of concern. However, Senator Casey remains committed to a bipartisan approach to legislation. On July 13, he and Cornyn introduced the Outbound Investment Transparency Act as an amendment to the National Defense Authorization Act (NDAA). Later that month, Senator Casey’s Outbound Investment Transparency Act passed as part of the National Defense Authorization Act (NDAA) by an overwhelming vote of 91-6. In August, at Casey’s urging, President Biden announced an executive order to screen U.S. investments in national security sectors that are made in countries of concern.

Read more about the Disclosing Investment in Foreign Adversaries Act here.