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Congress Contemplates Committee to Review Outbound Investment

On February 4, 2022, the House of Representatives passed the National Critical Capabilities Defense Act of 2021 (“NCCDA”) as part of the much larger America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (“COMPETES Act”). The COMPETES Act has many aims related to shoring up domestic manufacturing, protecting technology capabilities, and generally, as the name suggests, improving the country’s competitiveness with the rest of the world, primarily China.

There is plenty to unpack in the huge COMPETES Act, which is the House’s counterpart to the Senate’s U.S. Innovation and Competition Act (“USICA”) passed in June 2021. But it is the NCCDA that is grabbing headlines because of its proposal to create a committee to review outbound investments by U.S. persons. Read more…