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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)
Revision as of 07:58, 4 February 2025
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The [[Foreign Investment and National Security Act of 2007]] (FINSA) established the committee by statutory authority, reduced membership to six cabinet members and the attorney general, added the [[secretary of labor]] and the [[director of national intelligence]], and removed seven White House appointees.<ref name="stats290-291"/> In 2008, President Bush added the [[United States Trade Representative|United States trade representative]] and the [[director of the Office of Science and Technology Policy]] by {{EO|13456}} implementing the law.<ref name="stats290-291"/><ref>{{EO|13456}} of January 23, 2008</ref> FINSA requires the president to conduct a national security investigation of certain proposed investment transactions, provides a broader oversight role for Congress, and keeps the president as the only officer with the authority to suspend or prohibit mergers, acquisitions, and takeovers.<ref name="stats290-291"/> | The [[Foreign Investment and National Security Act of 2007]] (FINSA) established the committee by statutory authority, reduced membership to six cabinet members and the attorney general, added the [[secretary of labor]] and the [[director of national intelligence]], and removed seven White House appointees.<ref name="stats290-291"/> In 2008, President Bush added the [[United States Trade Representative|United States trade representative]] and the [[director of the Office of Science and Technology Policy]] by {{EO|13456}} implementing the law.<ref name="stats290-291"/><ref>{{EO|13456}} of January 23, 2008</ref> FINSA requires the president to conduct a national security investigation of certain proposed investment transactions, provides a broader oversight role for Congress, and keeps the president as the only officer with the authority to suspend or prohibit mergers, acquisitions, and takeovers.<ref name="stats290-291"/> | ||
In 2018, President [[Donald Trump]] signed the [[Foreign Investment Risk Review Modernization Act]] (FIRRMA), which granted CFIUS new powers over particular types of FDI that mainly concern Chinese investors.<ref>{{Cite news|url=https://www.nytimes.com/2018/10/10/business/us-china-investment-cfius.html|title=In New Slap at China, U.S. Expands Power to Block Foreign Investments|last=Rappeport|first=Alan|date=October 10, 2018|work=[[The New York Times]]|access-date=December 31, 2019|url-status=live|language=en-US|issn=0362-4331|archive-url=https://web.archive.org/web/20200104060440/https://www.nytimes.com/2018/10/10/business/us-china-investment-cfius.html|archive-date=January 4, 2020}}</ref><ref>{{Cite news|url=https://www.nytimes.com/2018/08/01/business/foreign-investment-united-states.html|title=Congress Strengthens Reviews of Chinese and Other Foreign Investments|last=Yoon-Hendricks|first=Alexandra|date=August 1, 2018|work=The New York Times|access-date=December 31, 2019|language=en-US|issn=0362-4331|archive-url=https://web.archive.org/web/20191001193542/https://www.nytimes.com/2018/08/01/business/foreign-investment-united-states.html|archive-date=October 1, 2019|url-status=live}}</ref> These include [[real estate investing]], minority investments through [[private equity]] that provide access to U.S. tech companies' [[trade secret|business information]], and U.S.-Chinese [[joint venture]]s. CFIUS also gained more [[Appropriation (law)|appropriations]], staffing, authority to enforce a longer review period, and formalizes more thorough material agreement disclosure.<ref>{{cite web|url=https://www.whitecase.com/publications/alert/cfius-reform-becomes-law-what-firrma-means-industry|title=CFIUS Reform Becomes Law: What FIRRMA Means for Industry|first1=Farhad|last1=Jalinous|first2=Karalyn|last2=Mildorf|first3=Keith|last3=Schomig|publisher=White & Case|date=August 13, 2018|access-date=April 1, 2019|archive-url=https://web.archive.org/web/20190401170116/https://www.whitecase.com/publications/alert/cfius-reform-becomes-law-what-firrma-means-industry|archive-date=April 1, 2019|url-status=live}}</ref> Trump's successor, President [[Joe Biden]] signed an executive order in September 2022 directing CFIUS to sharpen its scrutiny of foreign investment that could impact cyber security, quantum computing, biotechnology, and sensitive data.<ref>{{Cite news |last1=Alper |first1=Alexandra |last2=Holland |first2=Steve |date=2022-09-15 |title=Biden tells foreign investment panel to screen deals for data, cyber risks |language=en |work= | In 2018, President [[Donald Trump]] signed the [[Foreign Investment Risk Review Modernization Act]] (FIRRMA), which granted CFIUS new powers over particular types of FDI that mainly concern Chinese investors.<ref>{{Cite news|url=https://www.nytimes.com/2018/10/10/business/us-china-investment-cfius.html|title=In New Slap at China, U.S. Expands Power to Block Foreign Investments|last=Rappeport|first=Alan|date=October 10, 2018|work=[[The New York Times]]|access-date=December 31, 2019|url-status=live|language=en-US|issn=0362-4331|archive-url=https://web.archive.org/web/20200104060440/https://www.nytimes.com/2018/10/10/business/us-china-investment-cfius.html|archive-date=January 4, 2020}}</ref><ref>{{Cite news|url=https://www.nytimes.com/2018/08/01/business/foreign-investment-united-states.html|title=Congress Strengthens Reviews of Chinese and Other Foreign Investments|last=Yoon-Hendricks|first=Alexandra|date=August 1, 2018|work=The New York Times|access-date=December 31, 2019|language=en-US|issn=0362-4331|archive-url=https://web.archive.org/web/20191001193542/https://www.nytimes.com/2018/08/01/business/foreign-investment-united-states.html|archive-date=October 1, 2019|url-status=live}}</ref> These include [[real estate investing]], minority investments through [[private equity]] that provide access to U.S. tech companies' [[trade secret|business information]], and U.S.-Chinese [[joint venture]]s. CFIUS also gained more [[Appropriation (law)|appropriations]], staffing, authority to enforce a longer review period, and formalizes more thorough material agreement disclosure.<ref>{{cite web|url=https://www.whitecase.com/publications/alert/cfius-reform-becomes-law-what-firrma-means-industry|title=CFIUS Reform Becomes Law: What FIRRMA Means for Industry|first1=Farhad|last1=Jalinous|first2=Karalyn|last2=Mildorf|first3=Keith|last3=Schomig|publisher=White & Case|date=August 13, 2018|access-date=April 1, 2019|archive-url=https://web.archive.org/web/20190401170116/https://www.whitecase.com/publications/alert/cfius-reform-becomes-law-what-firrma-means-industry|archive-date=April 1, 2019|url-status=live}}</ref> Trump's successor, President [[Joe Biden]] signed an executive order in September 2022 directing CFIUS to sharpen its scrutiny of foreign investment that could impact cyber security, quantum computing, biotechnology, and sensitive data.<ref>{{Cite news |last1=Alper |first1=Alexandra |last2=Holland |first2=Steve |date=2022-09-15 |title=Biden tells foreign investment panel to screen deals for data, cyber risks |language=en |work=Reuters |url=https://www.reuters.com/world/us/biden-tells-foreign-investment-panel-screen-deals-data-cyber-risks-2022-09-15/ |access-date=2022-09-16 |archive-date=September 16, 2022 |archive-url=https://web.archive.org/web/20220916004346/https://www.reuters.com/world/us/biden-tells-foreign-investment-panel-screen-deals-data-cyber-risks-2022-09-15/ |url-status=live }}</ref> | ||
CFIUS has gained greater importance within the U.S. national security apparatus, primarily in the context of the [[China–United States trade war|ongoing trade war between the U.S. and China]]. The ''New York Times'' described the Committee as "powerful and unseen", observing its power to "kill the biggest multibillion-dollar global deals".<ref>{{Cite news |last=Granville |first=Kevin |date=2018-03-05 |title=Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals |url=https://www.nytimes.com/2018/03/05/business/what-is-cfius.html |url-status=live |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 |access-date=2023-01-31 |work=The New York Times |language=en-US |issn=0362-4331}}</ref> The number of deals reviewed by CFIUS has increased markedly since 2018,<ref>{{Cite web |last=Ho |first=Justin |date=2024-05-07 |title=Why the Committee on Foreign Investment in the U.S. is busier |url=https://www.marketplace.org/2024/05/07/why-committee-on-foreign-investment-in-is-busier-cfius/ |access-date=2024-07-17 |website=Marketplace |language=en-US}}</ref> as have the number of unilateral inquiries of non-notified deals.<ref>{{Cite web |last=Fingar |first=Courtney |title=With TikTok Bill Stalled, Treasury Seeks To Tighten CFIUS Enforcement |url=https://www.forbes.com/sites/courtneyfingar/2024/04/16/treasury-department-looks-to-toughen-up-cfius-enforcement/ |access-date=2024-07-17 |website=Forbes |language=en}}</ref> | CFIUS has gained greater importance within the U.S. national security apparatus, primarily in the context of the [[China–United States trade war|ongoing trade war between the U.S. and China]]. The ''New York Times'' described the Committee as "powerful and unseen", observing its power to "kill the biggest multibillion-dollar global deals".<ref>{{Cite news |last=Granville |first=Kevin |date=2018-03-05 |title=Cfius, Powerful and Unseen, Is a Gatekeeper on Major Deals |url=https://www.nytimes.com/2018/03/05/business/what-is-cfius.html |url-status=live |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 |access-date=2023-01-31 |work=The New York Times |language=en-US |issn=0362-4331}}</ref> The number of deals reviewed by CFIUS has increased markedly since 2018,<ref>{{Cite web |last=Ho |first=Justin |date=2024-05-07 |title=Why the Committee on Foreign Investment in the U.S. is busier |url=https://www.marketplace.org/2024/05/07/why-committee-on-foreign-investment-in-is-busier-cfius/ |access-date=2024-07-17 |website=Marketplace |language=en-US}}</ref> as have the number of unilateral inquiries of non-notified deals.<ref>{{Cite web |last=Fingar |first=Courtney |title=With TikTok Bill Stalled, Treasury Seeks To Tighten CFIUS Enforcement |url=https://www.forbes.com/sites/courtneyfingar/2024/04/16/treasury-department-looks-to-toughen-up-cfius-enforcement/ |access-date=2024-07-17 |website=Forbes |language=en}}</ref> | ||