Securing Partner Supply Chains Act

This Act may be cited as the Securing Partner Supply Chains Act.
Congress finds the following:
Foreign investment can be beneficial to economic growth, but also presents risks to national security if critical infrastructure, sensitive technology, or supply chains are compromised.
Many foreign countries lack robust regulatory frameworks to screen foreign investments for national security concerns.
Strengthening investment screening mechanisms worldwide supports United States national security by enhancing allied and partner countries’ resilience against malign foreign influence.
The United States has expertise in investment screening which can be leveraged to assist allies and partners.
Not later than 180 days after the date of the enactment of this Act, the Secretary of State shall establish the Initiative on Foreign Investment Screening (in this section referred to as the Initiative) which shall terminate on the date that is 3 years after the date of such establishment.
The Secretary shall coordinate with the heads of other government agencies, as appropriate, in the establishment and activities of the initiative.
The Secretary shall designate the Under Secretary for Economic Growth, Energy, and the Environment or the designee of the Under Secretary to lead the initiative.
The Initiative shall—
provide technical assistance, training, and advisory services to foreign countries regarding best practices for screening foreign investments for national security risks to such countries;
facilitate coordination among United States agencies, the private sector, partner countries, and civil society to promote investment security standards;
support the development and implementation of foreign investment screening mechanisms in partner countries through regulatory guidance and information sharing;
assess the progress of partner countries in establishing robust investment screening mechanisms; and
conduct outreach and capacity-building efforts to enhance global awareness of investment security risks.
Not later than one year after the date of enactment of this Act, and annually thereafter for 3 years, the Secretary shall submit to the appropriate congressional committees a report on the activities of the Initiative, including—
a summary of technical assistance and training provided to foreign countries;
an assessment of progress made by foreign countries in implementing investment screening mechanisms;
an evaluation of emerging national security risks related to foreign investment;
recommendations for further United States engagement with foreign countries regarding investment security assistance; and
for each country determined by the Secretary to be a partner country pursuant to subsection (c)(4)(C) and not included in a previous report required in this paragraph, a detailed description of the reasons for such determination.
In this section:
The term appropriate congressional committees means the following:
The Committee on Foreign Affairs of the House of Representatives.
The Committee on Foreign Relations of the Senate.
The term foreign investment means direct or indirect investment in the economy of a country by—
an individual who is not a citizen or national of such country; or
an entity that is not organized under the laws of such country or any jurisdiction within such country.
The term national security risk means a risk related to critical infrastructure, sensitive technology, supply chain vulnerabilities, or malign foreign influence.
The term partner country means the following:
A country with which the United States has entered into a bilateral or multilateral free trade agreement.
A country with which the United States has entered into a mutual defense agreement by treaty.
Any other country, as determined by the Secretary.