Rep. Robert Pittenger
WASHINGTON – The U.S. House of Representatives today gave final approval to Congressman Robert Pittenger’s historic legislation to protect America’s critical national security technology and infrastructure from malicious foreign investment.
Congressman Pittenger’s Foreign Investment Risk Review Modernization Act (FIRRMA, H.R. 5841) was included in the National Defense Authorization Act (NDAA), which was approved by an overwhelming bipartisan vote of 359-54. President Trump is expected to sign NDAA, including Congressman Pittenger’s provisions, into law.
“For years, China and other adversarial nation-states have vacuumed up critical American security-related technology and infrastructure through targeted business investments, especially in the areas of emerging technology,” said Congressman Pittenger (NC-09). “China has also forced American companies to share military-applicable technology through strategically-designed joint ventures. America’s Cold War-era safeguards weren’t able to combat this national security threat.
“For over two years, and through countless meetings and briefings and hearings, my office and I worked to carefully reform the Committee on Foreign Investment in the United States, identifying and developing solutions to loopholes. Our final product, which passed today, strengthens America’s national security while continuing to allow beneficial foreign investment.”
The Committee on Foreign Investment in the United States (CFIUS) is the only government mechanism to ensure potential foreign investments do not harm America’s national security. However, CFIUS has not been substantially updated in many years.
The Foreign Investment Risk Review Modernization Act, which was included with today’s passage of the NDAA:
*Expands CFIUS jurisdiction to include joint ventures, minority position investments, and real estate transactions near military bases and other sensitive national security facilities.
*Updates CFIUS definition of “critical technologies” to include emerging technologies that could be essential for maintaining the U.S. technological advantage over countries that pose threats.
*Adds new national security factors to the review process.
*Strengthens the government’s ability to protect American “critical infrastructure” from foreign government disruption.
*Creates a mechanism for the Treasury Department to work with America’s allies to improve the foreign investment review process overseas, strengthening global security.
Congressman Pittenger and Senate Majority Whip John Cornyn first introduced FIRRMA in November 2017. Their bipartisan legislation received strong pushback from businesses which have profited from China’s military build-up, but was endorsed by The White House, Defense Secretary Mattis, and five former Secretaries of Defense.
During final negotiations, certain concessions and modifications were accepted to more clearly define the scope of expanded CFIUS jurisdictions. While certain businesses and lobbyists opposed to CFIUS reform were awarded some changes, they have been offset with oversight structures that should assure the necessary national security outcome.
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