WASHINGTON – U.S. Senator Kevin Cramer (R-ND), member of the Senate Armed Services Committee (SASC), joined his colleagues in a letter to the Chairmen and Ranking Members of the Senate and House Armed Services Committees, requesting strong language in the 2024 National Defense Authorization Act (NDAA) to address the national security threat posed by sensitive technologies with dual-use applications being acquired by America’s adversaries. Specifically, the letter implores the leadership of the Committees to address the threat of outbound American investment to the People’s Republic of China’s (PRC) in this year’s NDAA.

The letter states the last thing the United States should be doing is facilitating technology which could one day be used against us, whether through espionage at home or against our servicemen and women deployed to fight for their nation.

“There is strong bipartisan consensus in both the U.S. Senate and U.S. House of Representatives that Congress must act to address the national security threat posed by these outbound investments. The Administration is also focused on the issue. On August 9, 2023, the President issued an Executive Order (E.O. 14105) titled Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern, seeking to deal with this same issue set. In fact, the E.O. goes beyond notification to consider prohibition of investment in some sectors,” the senators wrote.

“We have known for some time that U.S. companies are sending capital, intellectual property, and innovation to the PRC, fueling its advance in dual-use critical technology areas. To safeguard our national security, the U.S. needs visibility into our vulnerabilities by requiring, at a minimum, notification of sensitive investments by U.S. firms in these countries,” the senators continued. “In the interest of U.S. national security, we urge you to ensure that robust language addressing the threat posed by outbound investments in countries like the PRC is included in the 2024 NDAA that goes to the President for his signature.”

The letter was led by U.S. Senator Dan Sullivan (R-AK) and Congressman Mike Gallagher (R-WI-08). Additional cosigners include U.S. Senators Jacky Rosen (D-NV), Marco Rubio (R-FL), Rick Scott (R-FL), Joni Ernst (R-IA), Debbie Stabenow (D-MI), John Fetterman (D-PA), Tommy Tuberville (R-AL), Tammy Baldwin (D-W), Gary Peters (D-MI), Michael Bennet (D-CO), Bob Casey (D-PA), John Cornyn (R-TX), Pete Ricketts (R-NE), Jeanne Shaheen (D-NH), Chris Van Hollen (D-MD), Angus King (I-ME), and Mark Kelly (D-AZ).

In July, Senator Cramer cosponsored a bipartisan amendment led by Senators Cornyn and Casey to establish a process conducted by the Department of the Treasury, in coordination with the Department of Commerce, to require U.S. firms to notify Treasury when participating in certain “covered activities” in countries of concern. The amendment also requires the U.S. government to coordinate with allies and partners on the implications of a notification process and work to implement outbound investment screening in partner countries. The amendment passed 91 - 6.

Click here for the letter.