WASHINGTON – This morning, Congressman Robert Pittenger (NC-09) publicly highlighted deficiencies in the current Committee on Foreign Investment in the United States (CFIUS) review process which are being exploited by our adversaries. Potential reforms to CFIUS were the focus of today’s House Financial Services Monetary Policy and Trade Subcommittee hearing.
Congressman Pittenger has introduced major bipartisan legislation to revamp and modernize CFIUS.
“Our adversaries, the Chinese government in particular, are aware of CFIUS’s deficiencies and are actively exploiting them,” said Congressman Pittenger in his opening statement.
“Specifically, the Chinese government has used weaponized foreign direct investment to evade our safeguards and review processes in order to acquire state of the art, military-applicable technologies from U.S. firms.”
“In recent years we have seen a massive transfer of dual-use technology from U.S. firms to Chinese entities with close ties to the Chinese government.
“This technology and know-how has been instrumental in China’s military buildup and modernization efforts and has denigrated America’s military industrial base and alarmingly depleted our technological superiority.
“Mr. Chairman, this is a very serious problem that needs to be addressed with diligent haste. As I detailed in my op-ed for the Wall Street Journal published this morning, exports controls alone are not capable of protecting the U.S. from harmful foreign investment.
“Last fall, I introduced bipartisan legislation [with Senator Cornyn] called the Foreign Investment Risk Review and Modernization Act which modernizes the CFIUS process by addressing national security deficiencies in a measured and highly targeted manner.
“FIRRMA has been endorsed by the White House and is the product of nearly a year of outreach and close collaboration with Treasury, DOD, DOJ, ODNI and DHS.
“Years of Chinese exploitation of CFIUS’ outdated processes has been detrimental to U.S. national security. This is a serious problem that we must address now and my bill does that in a diligent and laser-focused manner.”
Click HERE for video of Congressman Pittenger’s opening statement from the March 15, 2018 Monetary Policy and Trade hearing.
In November, Congressman Pittenger introduced the Foreign Investment Risk Review Modernization Act, which will strengthen and upgrade the Committee on Foreign Investment in the United States (CFIUS) process for reviewing foreign investments that threaten U.S. national security.
Congressman Pittenger’s bipartisan legislation, introduced in partnership with Senate Majority Whip John Cornyn, has been endorsed by the White House, Defense Secretary Mattis, Treasury Secretary Mnuchin, and Attorney General Sessions.Share: