S.1360 - Protecting American Capital Act of 2025 (119th Congress)
Summary
S.1360, the Protecting American Capital Act of 2025, mandates an annual report from the Secretary of the Treasury to Congress. This report will detail United States portfolio investments in the People's Republic of China, including those routed through other jurisdictions. The report aims to assess the involvement of US persons and Chinese entities in these investments, focusing on types of investors, sectors receiving investments, and entities subject to sanctions or receiving significant investment amounts.
Expected Effects
The Act will increase transparency regarding US investments in China. This increased transparency could lead to more informed investment decisions by US entities. It may also influence policy decisions related to economic relations with China.
Potential Benefits
- Provides greater transparency regarding US investments in Chinese entities.
- Helps identify potential risks associated with investments in sanctioned entities.
- Offers insights into the flow of US capital into specific sectors of the Chinese economy.
- Informs Congress about the involvement of state pension funds in these investments.
- Potentially strengthens oversight of US investments abroad.
Most Benefited Areas:
Potential Disadvantages
- May create additional administrative burden for the Treasury Department.
- Could potentially strain US-China relations if the report is perceived as critical.
- The reporting requirements may be seen as intrusive by some US investors.
- The report's findings may be subject to interpretation and potential political manipulation.
- The act does not prevent investments, only reports on them.
Constitutional Alignment
The bill appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce with foreign nations. The requirement for the Secretary of the Treasury to submit a report falls under Congress's power to gather information necessary for informed legislation and oversight. The act does not infringe on individual liberties or rights as defined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).