Congress pushes Canada, Mexico to adopt China investment screening
S. 2861 — Protecting the USMCA from Harmful Chinese Investment Act · Filed by Dave McCormick (R-PA) · 1 cosponsor · Introduced Sep 18, 2025 · Referred to committee
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What it does
This bill directs the U.S. Trade Representative to push Canada and Mexico to adopt foreign investment screening rules similar to U.S. law (section 721 of the Defense Production Act) during the next USMCA review, with a focus on blocking or scrutinizing investments from China and other non-market economies. The bill also authorizes the U.S. to provide technical assistance to help Canada and Mexico build these screening frameworks.
Why we flagged it
The bill's operative mechanism is a negotiating directive to the USTR to advocate for harmonized foreign investment review rules across North America, paired with authorization for technical assistance. It is not a substantive change to U.S. law but rather a statement of negotiating priorities and a coordination mandate.
What the text implies
- The bill does not mandate Canada or Mexico to adopt any rules; it only directs the USTR to advocate for them. Success depends on voluntary adoption by trading partners, which may face domestic political resistance in those countries.
- Technical assistance provisions could commit U.S. resources (expert advisers, training, grants) to foreign governments without a specific appropriation or budget cap, creating an open-ended spending authority.
The full analysis lists 4 implications of this text.
Who it affects
The bill advances a legitimate national security objective—coordinating with trading partners to screen foreign investment threats—which could protect U.S. jobs and critical infrastructure.