Congress Curbs Treasury’s Ability to Restrict Outbound Investment, Lawmakers Say

The omission of funding for outbound investment restrictions in the recently enacted Further Consolidated Appropriations Act of 2024, or second minibus, is designed to prevent the Biden administration from blocking U.S. investors from taking over Chinese companies, the House Appropriations Committee said last week.

The omission, which its proponents believe is needed to limit executive overreach, is from the Financial Services and General Government Appropriations Act, one of six appropriations bills included in the second minibus. The committee said the move will help in "preventing the Biden Administration from blocking U.S. investors from taking over Chinese companies under Treasury’s outbound investment review process." President Joe Biden signed the appropriations package into law March 23.

The law moved forward without funding as the Treasury Department is developing regulations to restrict outbound investment in China’s artificial intelligence, quantum technology and semiconductor sectors (see 2308090066 and 2308090066).