Senators McCormick and Cortez Masto Introduce Legislation to Protect the USMCA from Harmful Chinese Investment

WASHINGTON, D.C., September 19, 2025 - Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) yesterday introduced the Protecting the USMCA from Harmful Chinese Investment Act, which would direct the U.S. Trade Representative (USTR) to prioritize North American alignment on foreign investment screening during the upcoming joint review of the U.S.-Mexico-Canada Agreement (USMCA). This legislation would strengthen U.S. national security by prioritizing better alignment with Canada and Mexico on the risks of investment from the People's Republic of China.

USTR formally initiated the public consultation process on the 2026 USMCA joint review on September 17.

"The Chinese Communist Party has made no secret of its ambition to dominate critical technologies and key infrastructure in our backyard," Senator McCormick said. "Canada and Mexico are Pennsylvania and America's top trading partners. We need a common approach with our neighbors to protect our economies from harmful foreign investment. This must be a top priority during the USMCA joint review."

"As Communist China attempts to expand its influence worldwide, it becomes even more important that America and its neighbors have one unified plan to combat their efforts," said Senator Cortez Masto. "This bipartisan, commonsense bill will help make sure that the United States, Canada, and Mexico work together to curb the threat of hostile foreign investments."

Chinese investment in Mexico and Canada can pose a significant national security risk for the United States. A December 2024 Financial Times analysis found that "Chinese companies have established themselves deeper into supply chains, developed stronger trade links and increased manufacturing in Mexico," including in telecommunications and other sectors that have raised U.S. concerns. Canada also faces continued economic threats from the PRC, and investment screening is a key tool in Canada's response to those threats.

The USMCA joint review provides an opportunity to strengthen cooperation with Canada and Mexico on investment security. While Canada's foreign investment framework, the Investment Canada Act, includes many requirements for national security reviews similar to the U.S. Committee on Foreign Investment in the United States (CFIUS), Canada only recently introduced mandatory pre-closing notification of investment in critical sectors. Mexico does not currently have a comprehensive framework for reviewing proposed foreign investments on national security grounds, but the Mexican government has expressed openness to establishing one.

Bill Summary

• Reiterates the importance of the U.S. economic relationship with Canada and Mexico and outlines why establishment of a CFIUS-like mechanism in both countries would advance U.S. national security.
• Establishes as a USMCA joint review negotiating objective that:
  • each USMCA country implement a legislative and regulatory framework for reviewing foreign investment for national security risks that is similar to CFIUS; and
  • the USMCA countries to coordinate to address shared threats from investments by nonmarket economy countries.
• Directs USTR to coordinate with Treasury and the Department of State on the provision of technical assistance to USMCA partners to support the establishment of frameworks for reviewing foreign investments for national security risks.

The one-pager on the bill is available here.

A text of the bill is available here.

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