Emily Kilcrease, senior fellow and director of the energy, economics and security program at the Center for a New American Security, told lawmakers that Congress should also enact legislation restricting outbound investments in China, focusing on specific transactions that could convey information "in critical technology sectors with relevance to U.S. national security interests."
Sen. Sherrod Brown, D-Ohio, chair of the Senate Banking Committee, asked why it's important for Congress to enact such legislation if Biden's executive order already exists.
"I think the administration's executive order is headed in the right direction," Kilcrease replied. "But ultimately, it is far better for these sorts of programs to be codified by Congress."
Sen. Bob Menendez, D-N.J., said that the order is a "good start, but (he fears) it may be too limited," and another witness agreed.
"We may, in the future, want to look at similar outbound investments on other critical and emerging technology areas," said Lindsay Gorman, senior fellow for emerging technologies at the German Marshall Fund of the United States' Alliance for Securing Democracy.
The Biden administration "has taken the right approach overall," contended Sen. Chris Van Hollen, D-Md., as the executive order aims to derisk critical supply chains without decoupling from economic engagement with China.
Part of the executive order directs the Treasury Department to issue a rule-making for implementation, so the department issued an advance notice of proposed rule-making on Aug. 9, with comments accepted until Sept. 28. Industry groups and lawyers have called on the department to clarify the nuances of the rule, including how it would apply to U.S. citizens working for offshore businesses.
In early November, Deputy Treasury Secretary Wally Adeyemo said the Treasury hopes to propose that rule "in the coming weeks," and once proposed, the industry could again provide the department with feedback.