Rep. Robert Pittenger
WASHINGTON – On Wednesday, Congressman Robert Pittenger (NC-09) received a letter from Ericsson, a major international networking and telecommunications company, expressing support for his Foreign Investment Risk Review Modernization Act (FIRRMA):
“We commend you, and Senator John Cornyn, for spearheading the Foreign Investment Risk Review Modernization Act (FIRRMA). This legislation provides critical and overdue updates to the Committee on Foreign Investment in the United States (CFIUS) review process. Our world has changed a great deal since CFIUS was created more than four decade ago – there are new competitors, new challenges, and new concerns. And we must ensure there are adequate safeguards in place to properly vet and scrutinize the efforts by foreign entities to gain access to our markets, and our technology.
“In short, FIRRMA helps provide that assurance by arming CFIUS with the tools necessary to preserve our national security interests while not discouraging investment in the United States. It’s an important effort in a regulatory area that requires modernization, without which will result in the potential compromise of technology developed by companies like Ericsson and in turn, our national security.”
Ericsson joins Oracle Corporation, along with Treasury Secretary Steven Mnuchin, Defense Secretary James Mattis, Attorney General Jeff Sessions, and former Homeland Security Secretary Michael Chertoff in offering public support for Congressman Pittenger’s national security legislation.
In addition, President Trump’s National Security Strategy specifically supports efforts to reform CFIUS: “While maintaining an investor-friendly climate, this Administration will work with the Congress to strengthen the Committee on Foreign Investment in the United States (CFIUS) to ensure it addresses current and future national security risks.
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 a copy of the Ericsson letter to Congressman Pittenger.
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