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

Washington, D.C. - U.S. Senators Catherine Cortez Masto (D-Nev.) and Dave McCormick (R-Pa.) 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. 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 (PRC).

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

"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."

"The Chinese Communist Party has made no secret of its ambition to dominate critical technologies and key infrastructure in our backyard," said Senator McCormick. "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."

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. To address those threats, this bill would:

• Reiterate the importance of the U.S. economic relationship with Canada and Mexico and outline why establishment of a CFIUS-like mechanism in both countries would advance U.S. national security.
• Establish 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 establish a mechanism to coordinate to address shared threats from investments by nonmarket economy countries.
• Direct the 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.

Read the full bill here.

Senator Cortez Masto has led efforts in Congress to stand up to the Chinese Communist Party's influence and protect American national and economic security. Earlier this year, Cortez Masto introduced the FIGHT China Act to safeguard America's national security against the growing threat posed by Communist China by prohibiting and requiring notification of U.S. investment in certain technologies in China. The Senator also introduced the PASS Act to ban individuals and entities controlled by China, Russia, Iran, and North Korea from purchasing agricultural land and businesses located near U.S. military installations or sensitive sites and the Pacific Partnership Act to strengthen America's strategic partnerships with Pacific Island nations, support sustainable development, and combat the increasing Chinese aggression in the region.

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