New Accountability Act Mandates Quarterly Reporting on U.S. Investments in Adversary Nations like China and Russia

The American Investment Accountability Act is essentially a massive data-gathering operation focused on tracking where U.S. money flows internationally, specifically targeting countries the government considers foreign adversaries—think China, Russia, Iran, North Korea, Cuba, and Venezuela.

This bill doesn’t ban anything; instead, it sets up mandatory, detailed quarterly reporting requirements for three major federal agencies: Commerce, Treasury, and the SEC. Their job is to tell Congress exactly how much U.S. capital—both direct investment (like building a factory) and portfolio investment (like buying stocks)—is landing in these “Countries of Concern” or in companies tied to their governments (called “Covered Entities”).

The Government’s New Financial GPS

For most people, the immediate impact is zero, but for anyone working in finance, large corporations, or global supply chains, this is a big deal. The core of the bill (Sec. 2) is about transparency and oversight. Congress wants a detailed map of this financial exposure, and they want it updated every 90 days.

The Commerce Department will track direct investments. This means they’ll report on things like when a large U.S. company—a “Covered United States Business” (which specifically excludes small businesses)—invests more than $5 million in one shot, or $10 million total, in a Country of Concern. They also have to break down these investments by industry and even the U.S. state the investment originated from.

The Treasury Department focuses on portfolio investments. They’ll track the value of stocks and bonds U.S. persons buy in these adversary countries, paying special attention to transactions over $10 million. Crucially, both Commerce and Treasury must track funds that are routed through “Offshore Financial Centers”—basically, any middleman country that handles a significant volume of investment into these adversary nations.

The SEC (Securities and Exchange Commission) will monitor specific corporate actions, which is where things get really detailed. They have to report every time a large U.S. company (a Covered U.S. Business) does things like:

• Forming a joint venture with a Covered Entity.
• Merging with or acquiring a Covered Entity.
• Expanding operations in a Country of Concern by more than $5 million.

What This Means for Business and Oversight

If you work for a large company that has any kind of footprint in China or Russia, this bill means your compliance and legal teams are going to have a lot more paperwork. The bill requires tracking these specific corporate events, which translates into increased reporting burdens for the federal agencies, and likely, increased data collection demands placed on the Covered U.S. Businesses themselves.

On the flip side, this transparency offers a benefit to national security agencies and Congress. They will finally have a clear, data-driven picture of U.S. capital flows into geopolitical rivals. This data is the foundation for future policy decisions—whether that means new sanctions, export controls, or further investment restrictions. It’s hard to make smart policy without knowing the size and shape of the problem, and this bill aims to provide those facts.

One thing to note is the definition of a “Covered U.S. Business” explicitly excludes small businesses. While this spares smaller firms the compliance headache, it also means the government’s comprehensive financial map will have blind spots where smaller, potentially riskier, transactions are concerned. Overall, this Act is less about immediate regulation and more about turning on the floodlights so Congress can see exactly where the money is going before they decide what, if anything, to restrict next.