Lawmakers look at U.S. investments clampdown

Driving the news: Senate Banking Chairman Sherrod Brown said at a hearing yesterday his committee will consider a forthcoming measure from Bob Casey and John Cornyn to address "risks posed by certain outbound U.S. investments."

• Brown didn't mention it specifically, but the pair had a bill last Congress to create a committee for screening U.S. businesses' dealings with foreign countries if they are involved with "critical" supply chains.
• Brown backed that legislation, which was recently reintroduced in the House.
• Paul Rosen, Biden's assistant Treasury secretary for investment security, said a recent executive order to create reviews for U.S. firms investing overseas was a reaction to the kinds of concerns that Brown raised.
• But the administration, Rosen said, believes it doesn't "have an effective tool to target the money and sophistication, with the know-how, that goes into these sensitive and most critical technologies [and] into countries of concern."

Between the lines: Brown's plans come as a similar push for investment restrictions kicks off in the House Select China panel.

• The panel recently dropped policy recommendations calling for Congress to restrict outbound investment over forced labor in China.
• Chairman Mike Gallagher hopes some of the ideas wind up in the NDAA.

Of note: There's at least one key GOP skeptic on curbing outbound cash: House Financial Services Chairman Patrick McHenry.

• McHenry sent a letter to Treasury last week saying the executive order would "prove futile in its intended effect" and limit "the influence of Western firms in Chinese markets."