According to relevant media reports, on Monday, local time, US bipartisan groups reached an agreement on a proposal to restrict investment in China. The proposal would give the U.S. government broad new powers to block billions of dollars in U.S. investment in China.

A bipartisan group of lawmakers said on Monday they had agreed on a proposal that would give the U.S. government broad new powers to block billions of dollars in U.S. investment in China, Reuters reported. The bill is part of a broader bill with an uncertain future.

The proposal would give the U.S. government broad new powers to block billions of dollars in U.S. investment in China. The provision is part of broad legislation aimed at boosting U.S. competitiveness against China and provides chipmakers with $52 billion to Expand U.S. operations.

U.S. Senators Bob Casey, John Cornyn, and Representatives Rosa DeLauro, Bill Pascrell, Jr., Michael McCaul, Brian Fitzpatrick and Victoria Spartz said in a statement: "The improved proposal released Monday has been approved by both parties and in both the Senate and the House of Representatives. support and address industry concerns, including the scope of anticipated activities, sectors covered, and the prevention of duplication of mandates.”

The original "outbound investment" proposal was opposed by many chip companies, fearing that it could reduce companies' overseas investment, and some semiconductor makers opposed its inclusion in chip bills being finalized by members of the Senate and House of Representatives.

Democratic Senator Mark Warner said on Monday that the broader chip bill was "running on time" and said there was "a lot of discussion", hoping to shift the focus to a bill that would only focus on subsidizing chip factories, potentially ditching trade provisions and other goals aimed at Measures to help the United States compete with China in technology, business, and technology.

The foreign investment measure proposal was originally proposed by Cornyn and Casey as a stand-alone bill, but was later added to the House version of the chip bill.

Compared to the original version, the draft legislation would limit overseas investment by many chipmakers, prompting objections from critics who say it would hurt U.S. competitiveness. "If the U.S. government unilaterally imposes such controls, it will only damage the flexibility and resilience of U.S. companies," the US-China Business Council said of the new draft.

A new investment committee will work with allies to coordinate and share information, the draft said.

The bill aims to give the U.S. government a clearer picture of U.S. investment. Under the new rules, the U.S. must notify the government of investments that may be restricted by the new rules, and the U.S. can use existing powers to block investments or reduce risk. If no action is taken, the investment can go ahead.

Jake Sullivan, the national security adviser to U.S. President Joe Biden, previously said the administration is conducting new investment screenings and considering foreign investment in a bid to better help the U.S. position itself well in the technology race.

According to a Rhodium study, 43% of U.S. foreign direct investment (FDI) deals in China over the past 20 years are likely to be subject to the broad categories of scrutiny laid out in the original proposal.