Rep. Robert Pittenger
CHARLOTTE – On Tuesday, the Trump Administration, through CFIUS, blocked Ant Financial’s takeover of U.S. money-transfer business MoneyGram. The Communist Chinese government is a significant shareholder in Ant Financial, and the company’s chairman is seen regularly with Communist leadership.
Congressman Robert Pittenger (NC-09) is leading efforts to strengthen the Committee on Foreign Investments in the United States (CFIUS), which advises the President on the potential national security impact of foreign investments, mergers, and acquisitions in sensitive industries.
“The strength of America’s economy is vital to our national security,” said Congressman Robert Pittenger (NC-09). “Giving China direct access to sensitive financial information, including remittances from dissidents living abroad and the ability to manipulate data on members of the U.S. military and government, would undermine the trustworthiness of our economy. Thank you to President Trump for once again putting America’s national security first.”
Congressman Pittenger has worked since early 2017 to highlight risks of the proposed Ant-Moneygram merger, including writing a widely-cited February 21, 2017 op-ed for The Wall Street Journal (http://on.wsj.com/2ClZVyQ):
“A separate Congressionally chartered body, the U.S.-China Economic and Security Review Commission, recently held a bipartisan hearing on the risks posed by coordinated, state-driven Chinese investments. Expert testimony provided by the Rhodium Group identified how ‘China’s state-dominated financial system and the lack of rule of law means that state involvement can be pervasive, even if a firm is privately owned.’”
New legislation from Congressman Pittenger and Senate Majority Whip John Cornyn (R-TX) specifically targets the theft or strategic acquisition of intellectual property, sensitive technology, and financial data by China and other adversarial foreign powers.
Congressman Pittenger’s Foreign Investment Risk Review Modernization Act, which would strengthen and modernize CFIUS, has been endorsed by Treasury Secretary Steven Mnuchin, Attorney General Jeff Sessions, Defense Secretary James Mattis, and former Homeland Security Secretary Michael Chertoff. President Trump’s “America First” National Security Strategy makes addressing these issues a priority.
TREASURY SECRETARY MNUCHIN: “I support the goals of FIRRMA, which will help to ensure that CFIUS has the tools necessary to protect the national security of the United States, while simultaneously maintaining our open investment environment. I stand ready to work with Senators Cornyn, Feinstein, and Burr, Congressman Pittenger, the committees of jurisdiction, and other Members of Congress as this important legislation advances,” said U.S. Treasury Secretary Steven Mnuchin. (12/14/2017)
ATTORNEY GENERAL SESSIONS: “I am particularly supportive of the goals of several aspects of your proposed legislation, including but not limited to (1) the expansion of CFIUS’s authority to review certain transactions that may pose national security concerns; (2) an expanded list of national security factors that CFIUS should consider; and (3) mandatory disclosures of certain investments by state-owned enterprises,” said U.S. Attorney General Jeff Sessions. (12/13/2017)
DEFENSE SECRETARY MATTIS: “As the national security landscape changes, the existing process and authorities must be updated. DoD depends on critical, foundational, and emerging technologies to maintain military readiness and preserve our technological advantage over potential adversaries. FIRRMA would help close related gaps that exist in both the Committee on Foreign Investment in the United States (CFIUS) and export control processes, which are not presently keeping pace with today’s rapid technological changes.” (12/15/17)
BACKGROUND
The Committee on Foreign Investment in the United States (CFIUS) is the only government mechanism to ensure potential foreign investments do not harm our national security. However, CFIUS has not been substantially updated since the Ford Administration.
The Foreign Investment Risk Review Modernization Act, introduced on November 8th, 2017 by Congressman Pittenger and Senator Cornyn:
*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
Click here for video of Congressman Pittenger’s interview with Fox News on efforts to block foreign investments which threaten America’s national security.
The Foreign Investment Risk Review Modernization Act has already been the subject of a House subcommittee hearing, with additional legislative action expected in the first quarter of 2018.
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