Protecting the USMCA from Harmful Chinese Investment Act

# Protecting the USMCA from Harmful Chinese Investment Act (S 2861) **What the Bill Would Do** This bill aims to prevent Chinese companies and investors from using loopholes in the U.S.-Mexico-Canada trade agreement (USMCA) to gain market access. Specifically, it would restrict Chinese investment or ownership in industries covered by the USMCA—such as manufacturing, automobiles, and agriculture—unless the investment has been properly reviewed and approved by U.S. authorities. The bill targets a potential vulnerability where Chinese entities could bypass USMCA restrictions by routing investments through subsidiaries or shell companies based in Mexico or Canada. **Who It Affects and Key Provisions** The bill would impact U.S.

manufacturers, farmers, and workers in industries covered by the USMCA, as well as foreign investors seeking to do business in those sectors. It would likely require additional screening and approval processes for foreign investment in these industries, particularly from Chinese sources. The measure reflects concerns that without such protections, Chinese investment could undermine the intended benefits of the USMCA trade deal, which was designed to prioritize North American trade and manufacturing. **Current Status** As of now, the bill remains in committee and has not yet been voted on by the full Senate. It was introduced in the 119th Congress by Senator David McCormick (R-PA).