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Committee on Foreign Investment in the United States: Difference between revisions
Committee on Foreign Investment in the United States (view source)
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The '''Committee on Foreign Investment in the United States''' ('''CFIUS''' | The '''Committee on Foreign Investment in the United States''' ('''CFIUS''') is an inter-agency committee in the [[Federal government of the United States|United States government]] that reviews the national security implications of foreign investments in the U.S. economy.<ref>{{Cite web |date=2024-01-25 |title=The Committee on Foreign Investment in the United States (CFIUS) |url=https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius |access-date=2024-01-30 |website=U.S. Department of the Treasury |language=en}}</ref> | ||
CFIUS' jurisdiction includes any transaction that could result in foreign control of a U.S. business, such as a merger, acquisition, or takeover; certain noncontrolling investments in businesses involved in critical technologies, infrastructure, or the handling of sensitive personal data; and certain real estate transactions. At CFIUS' recommendation, the [[President of the United States|President]] may suspend or prohibit transactions deemed threatening to U.S. national security. | |||
CFIUS does not acknowledge which deals are under review nor require the involvement of any of relevant parties.<ref>{{cite news|url=https://www.nytimes.com/2018/03/05/business/what-is-cfius.html|title=Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals|first=Kevin|last=Granville|date=March 5, 2018|access-date=April 1, 2019|work=The New York Times|archive-url=https://web.archive.org/web/20190331220631/https://www.nytimes.com/2018/03/05/business/what-is-cfius.html|archive-date=March 31, 2019|url-status=live}}</ref> It utilizes classified information from the [[United States Intelligence Community|U.S. Intelligence Community]] and does not publicly announce its findings. There is no statute of limitations for CFIUS to exert jurisdiction over a transaction.<ref name=":0" /> Companies and/or individuals that have failed to make an appropriate filing for their transactions, whether ongoing or complete, may sustain a penalty in certain circumstances; additionally, the foreign party may be forced to divest.<ref>{{cite web | url=https://news.bloomberglaw.com/us-law-week/cfius-builds-on-2022-activity-promising-more-investor-oversight | title=CFIUS Builds on 2022 Activity, Promising More Investor Oversight | access-date=March 13, 2023 | archive-date=March 13, 2023 | archive-url=https://web.archive.org/web/20230313154455/https://news.bloomberglaw.com/us-law-week/cfius-builds-on-2022-activity-promising-more-investor-oversight | url-status=live }}</ref> | |||
== Organization == | |||
CFIUS is chaired by the [[United States Secretary of the Treasury|U.S. Secretary of the Treasury]] and includes representatives from 16 [[United States federal executive departments|federal executive departments and agencies]], including | |||
* Departments of [[United States Department of Defense|Defense]] | |||
* [[United States Department of State|State]] | |||
* [[United States Department of Commerce|Commerce]] | |||
* [[Department of Homeland Security|Homeland Security]]. | |||
Additionally, certain [[White House Office of the Staff Secretary|White House offices]] observe and participate as needed, such as | |||
* [[Office of Management & Budget]] | |||
* [[Council of Economic Advisers]] | |||
* [[United States National Security Council|National Security Council]] | |||
* [[United States Homeland Security Council|Homeland Security Council]] | |||
* [[National Economic Council (United States)|National Economic Council]].<ref>[https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-overview#:~:text=The%20members%20of%20CFIUS%20include,Department%20of%20Homeland%20Security "CFIUS Overview | U.S. Department of the Treasury"] {{Webarchive|url=https://web.archive.org/web/20230330200017/https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-overview#:~:text=The%20members%20of%20CFIUS%20include,Department%20of%20Homeland%20Security|date=March 30, 2023}} </ref> | |||
== History == | |||
CFIUS was established in 1975 by President [[Gerald Ford]]'s {{Executive Order|11858}}, pursuant to Section 721 of the [[Defense Production Act]], initially to study and provide policy recommendations regarding foreign investment. Subsequent fears of Japanese investment[[Fujitsu|—]]<nowiki/>particularly a proposed purchase of [[Fairchild Semiconductor]] by [[Fujitsu]]—led Congress to pass the [[Exon–Florio Amendment]] in 1988, which empowered the President to reject deals pursuant to a review by CFIUS. The committee was granted formal statutory authority by the [[Foreign Investment and National Security Act of 2007]] and further strengthened in 2018 by the Foreign Investment Risk Review and Modernization Act.<ref>{{Cite web |title=Summary of the Foreign Investment Risk Review Modernization Act of 2018 |url=https://home.treasury.gov/system/files/206/Summary-of-FIRRMA.pdf |access-date=October 15, 2024 |website=[[United States Department of the Treasury]]}}</ref> | CFIUS was established in 1975 by President [[Gerald Ford]]'s {{Executive Order|11858}}, pursuant to Section 721 of the [[Defense Production Act]], initially to study and provide policy recommendations regarding foreign investment. Subsequent fears of Japanese investment[[Fujitsu|—]]<nowiki/>particularly a proposed purchase of [[Fairchild Semiconductor]] by [[Fujitsu]]—led Congress to pass the [[Exon–Florio Amendment]] in 1988, which empowered the President to reject deals pursuant to a review by CFIUS. The committee was granted formal statutory authority by the [[Foreign Investment and National Security Act of 2007]] and further strengthened in 2018 by the Foreign Investment Risk Review and Modernization Act.<ref>{{Cite web |title=Summary of the Foreign Investment Risk Review Modernization Act of 2018 |url=https://home.treasury.gov/system/files/206/Summary-of-FIRRMA.pdf |access-date=October 15, 2024 |website=[[United States Department of the Treasury]]}}</ref> | ||
==Process== | ==Process== | ||